South African digital banking startup Tyme Group has secured $250 million in a Series D funding round, raising its valuation to $1.5 billion.
The round was led by Nu Holdings, the parent company of Latin America’s Nubank, which invested $150 million for a 10% stake. The M&G Catalyst Fund contributed $50 million, while existing investors supplied the remaining $50 million.
Founded in 2019, Tyme Group operates as a hybrid financial services provider, combining digital banking with physical service points. It currently serves 15 million customers across South Africa and the Philippines, with TymeBank, its South African brand, accounting for 10 million users.
Nu Holdings’ founder and CEO, David Vélez, praised Tyme’s potential for growth, stating: “Tyme Group is uniquely positioned to become a leader in digital banking across Africa and Southeast Asia. We look forward to sharing insights on scaling to millions of customers.”
Tyme reports having raised over $400 million in customer deposits and disbursed $600 million in small business loans. It plans further expansion into Vietnam and Indonesia by 2025.
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About TymeBank
TymeBank is a digital bank in South Africa tailored for lower-income customers. It operates without physical branches, relying on an Android app, internet banking, and partnerships with retail giants Pick n Pay and Boxer, where self-service kiosks allow users to open accounts.
Coen Jonker, the group’s chairman, founded Tyme, which is majority-owned by African Rainbow Capital (ARC) with a 40% stake.
The bank was launched in 2015 and received regulatory approval from the South African Reserve Bank to operate entirely online in 2017. A soft launch followed in November 2018, enabling basic accounts to be opened online and at selected Pick n Pay stores.
In 2019, Ethos Private Equity, through its AI Fund, invested R200 million into TymeBank. Prior to this, the bank was wholly owned by African Rainbow Capital Financial Services Holdings.
Previous Funding Milestones
May 2023: Tyme raised $77.8 million in a pre-Series C round led by Norrsken22 and Blue Earth Capital to support operations in South Africa and the Philippines.
Mid 2024: The company reportedly sought $150 million to fuel expansion into Indonesia.
With this latest funding round, Tyme joins the ranks of Africa’s unicorn startups, attaining a valuation exceeding $1 billion. Nigeria’s Moniepoint achieved unicorn status in October 2024.
Future Ambitions
- Expansion into Southeast Asia, with Vietnam and Indonesia targeted by 2025.
- A New York Stock Exchange listing planned by 2028.
- Broader access to affordable banking services.
Africa’s Other Fintech Unicorns
1. Interswitch (Nigeria): Reached unicorn status in 2019 after Visa’s $200 million investment.
2. Flutterwave (Nigeria): Valued at over $3 billion following a $250 million Series D in 2022.
3. OPay (Nigeria): Achieved a $2 billion valuation after raising $400 million in 2021.
4. Wave (Senegal): Valued at $1.7 billion following a $200 million Series A in 2021.
5. Andela (Nigeria): Reached a $1.5 billion valuation in 2021.
6. Chipper Cash (Africa): Valued at over $2 billion after a $150 million Series C in 2022.
7. MNT-Halan (Egypt): Valued at $1 billion after raising $260 million in 2023
8. Moniepoint (Nigeria): Achieved unicorn status in 2024 after raising $110 million.
Understanding Funding Stages
- Pre-seed funding: The earliest stage, often sourced from personal savings, friends, or family, typically under $500,000.
- Seed funding: The first major round to develop a minimum viable product (MVP), ranging from $1 million to $5 million.
- Series A: Early venture capital funding, typically $15 million to $20 million, aimed at scaling operations.
- Series B: Focuses on growing user bases and revenue streams, with funding often between $15 million and $900 million.
- Series C: Targets expansion or acquisitions for well-established companies.
- Series D: Supports mature companies preparing for IPOs or significant market growth.
- An IPO (Initial Public Offering) remains the ultimate milestone for most startups.
