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HomeMarketBrazilian Digital Lender Nubank Invests $150 Million in Tyme Group

Brazilian Digital Lender Nubank Invests $150 Million in Tyme Group

Sao Paulo, Brazil – Nubank, the prominent Brazilian digital bank, has announced a significant investment of $150 million in Tyme Group, a fast-growing digital bank with a customer base spanning South Africa and the Philippines. This funding is part of Tyme Group’s Series D funding round, which raised a total of $250 million. The investment will aid Tyme Group in expanding its operations further into Southeast Asia and work toward its goal of listing publicly by 2028.

A Major Push Into Southeast Asia

Tyme Group, which has seen remarkable growth, currently serves 15 million customers through its digital banking operations in South Africa and the Philippines. The company has ambitious plans for expansion, particularly into markets like Vietnam and Indonesia. With the backing of Nubank and other investors, Tyme Group is poised to significantly enhance its regional footprint.

The latest investment round was underscored by contributions from major investors, including the M&G Catalyst Fund, which subscribed for $50 million, alongside existing shareholders. This funding enables Tyme Group to accelerate its growth strategy and supports its bid to become a top-three retail bank in South Africa within the next three years, according to Karl Westvig, the CEO of TymeBank in South Africa.

Unicorn Status and Future Listing Plans

With this latest funding, Tyme Group has officially achieved unicorn status, a term used to describe a startup valued at over $1 billion. The investment gives Tyme Group a valuation of $1.5 billion, cementing its position as a key player in the digital banking space in emerging markets.

Tyme Group’s co-founder and CEO, Coen Jonker, shared insights in a recent interview with Bloomberg, revealing that the company is planning to list publicly, with an eye on the New York Stock Exchange (NYSE), as well as a potential secondary listing on the Johannesburg Stock Exchange (JSE). These listing plans are set for completion by 2028, marking an exciting future for the rapidly expanding fintech firm.

Strategic Growth and Global Partnerships

The partnership with Nubank, a leader in Latin American digital banking, further strengthens Tyme Group’s credibility and market position. Nubank’s involvement provides Tyme Group with enhanced market visibility and access to a global network of investors, including high-profile firms such as GIC and Berkshire Hathaway.

Tyme Group operates through its two main digital banking platforms: TymeBank in South Africa, which launched in 2019 and now has 10 million customers, and GoTyme, launched in the Philippines in October 2022 in collaboration with the Gokongwei Group.

A Look Ahead

As Tyme Group prepares for its next phase of growth, it is leveraging its financial backing to push for stronger market penetration in Vietnam and Indonesia, expanding its digital services and infrastructure. With a $1.5 billion valuation and an expanding customer base, Tyme Group is on track to become one of the key players in Southeast Asia’s rapidly evolving digital banking market.

African Rainbow Capital, controlled by Patrice Motsepe, a prominent South African billionaire, remains Tyme Group’s largest shareholder, further reinforcing the group’s strong backing from influential investors across the globe.

This investment marks a significant moment for Nubank as it continues to expand its influence beyond Latin America, further cementing its place as a major global fintech player.

Reporting by Andre Romani in Sao Paulo and Nqobile Dludla in Johannesburg; Editing by Brendan O’Boyle and Jamie Freed.

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