African Fintech Startup Tyme Group Achieves Unicorn Status Following $250M Series D Investment
South African fintech firm Tyme Group has attained unicorn status after securing $250 million in a Series D funding round, bringing its valuation to $1.5 billion. This substantial investment, led by Latin America's largest fintech, NuBank, was also backed by M&G Catalyst Fund and existing shareholders.
Coenraad Jonker, CEO and co-founder of Tyme, considered the funding a "unique vote of confidence" in the company's business model. Tyme operates a hybrid digital banking model, offering over 10 million users in South Africa, where it is known as TymeBank.
The fintech plans to leverage this investment to expand into Vietnam and Indonesia next year and eyeing an IPO in New York by 2028, with a potential secondary listing in South Africa. Tyme remains majority-owned by African Rainbow Capital (ARC), with a 40% stake, while Nu Holdings, which led the latest funding, acquired a 10% stake.
The investment marks a recovery in investor interest in fintechs after a slowdown due to rising interest rates worldwide. Tyme joins Nigeria's Moniepoint as one of the few African fintechs to achieve unicorn status this year. Nubank's investment in Tyme aligns with its broader strategy to diversify geographically and tap into the growth potential of emerging markets outside Latin America.
Tyme plans to use the funds to strengthen its presence in its existing markets and expand further in South-East Asia. Its ambition to go public in the U.S. by 2028 could significantly enhance its global presence and access to capital. This investment underscores investor confidence in Tyme's ability to lead in digital banking in Africa and Southeast Asia.
- The funding secured by Tyme Group, valued at $1.5 billion, will be utilized to strengthen its presence in existing markets and expand further in South-East Asia.
- Nubank's investment in Tyme Group, a South African fintech firm, aligns with the latter's broader strategy to diversify geographically and tap into the growth potential of emerging markets, specifically Southeast Asia.
- The substantial investment in Tyme Group, led by NuBank and other investors, indicates a recovery in investor interest in fintech businesses, particularly those operating in emerging markets like Africa and Southeast Asia, signifying the potential for significant growth in these sectors.
