The news
- Nubank's $150 million contribution is part of Tyme's $250 million Series D funding round, which also includes investments from M&G Catalyst Fund and existing shareholders.
- The funding will support Tyme's growth into Southeast Asian markets, particularly Vietnam and Indonesia.
- This investment marks Nubank's expansion beyond Latin America, highlighting Africa's growing appeal in the global fintech landscape.
Nubank, the world's largest digital bank by market value, has invested $150 million in Tyme Group, a South African digital banking platform, through Nu Holdings. The funding elevates the South African bank to unicorn status and comes a few months after the startup received a $9.5 million investment in September.
TymeBank, launched in South Africa in 2019 with backing from billionaire Patrice Motsepe's African Rainbow Capital, has rapidly grown its customer base to over 10 million in South Africa and 5 million in the Philippines.
The bank achieved its first profit at the end of 2023, demonstrating the viability of its digital-only model in emerging markets.
Nubank's decision to acquire a 10% stake in Tyme underscores its confidence in the potential of digital banking solutions in Africa and Southeast Asia. Nubank, which has grown to a market capitalization of $56 billion since its launch in 2013, brings valuable expertise to Tyme's expansion efforts.
The African fintech sector has been experiencing significant growth, with revenues projected to reach $60 billion by 2030. South Africa, Nigeria, Egypt, and Kenya are expected to drive this expansion, with a compound annual growth rate of 32%.
Tyme's strategy involves leveraging its success in South Africa to penetrate Southeast Asian markets. The bank has already launched GoTyme in the Philippines and plans to establish a digital bank in Vietnam, where it employs 300 technology staff.
The recent funding will facilitate these expansion plans and support Tyme's goal of becoming a top three retail bank in South Africa within the next three years.
Nubank's investment in Tyme reflects a broader trend of cross-continental partnerships in the fintech industry, aiming to capitalise on the rapid adoption of digital banking services in emerging markets.
