Johannesburg – Tyme, the innovative company behind TymeBank in South Africa and GoTyme in the Philippines, has achieved a remarkable milestone by securing a significant investment of R4.5 billion from Nubank, the world’s largest independent digital bank.
This strategic partnership not only highlights Nubank’s confidence in Tyme’s cutting-edge banking model but also solidifies Tyme’s position as a transformative force in the financial services sector within emerging markets.
The capital influx comes from a successful Series D funding round, which raised $250 million (R4.5 billion), bringing Tyme’s total valuation to $1.5 billion (R27 billion).
Nubank’s decision to invest demonstrates its recognition of Tyme’s potential to reshape banking services, reminiscent of Nubank’s influence in Brazil.
With a market capitalization of $68 billion, Nubank’s valuation is almost on par with the total banking sector in South Africa, valued at $85 billion, which includes Capitec.
Both Nubank and Capitec have seen their market cap rise by over 70% this year, indicative of strong investor enthusiasm in digital banking solutions.
Nubank stands as one of the largest digital financial services platforms globally, serving 110 million customers across Brazil, Mexico, and Colombia.
Strategic advantages for Tyme
The collaboration with Nubank provides Tyme with invaluable expertise and resources, especially in areas such as data analytics, credit risk management, product development, and marketing.
These elements are crucial drivers that will accelerate Tyme’s expansion and support its ambition to lead in key markets.
“Nubank revolutionized financial services in Brazil,” remarked Coen Jonker, Founder and CEO of Tyme Group.
“We are excited about the opportunities that Nubank’s partnership and insights can offer to Tyme, particularly in data analytics, credit risk management, product development, and marketing.
“This is an important milestone for Tyme.”
A shared vision for financial inclusion
David Vélez, Founder and CEO of Nubank, emphasized the global transition toward digitally driven financial services.
“Since its founding, Nubank has advocated that the future of financial services lies in digitally native companies.
“We have engaged with numerous teams across different regions and believe that Tyme Group is exceptionally positioned to emerge as a leading digital bank in Africa and Southeast Asia.
“We are excited to partner with Tyme to share our expertise in scaling this model to serve hundreds of millions of customers.”
Expanding financial inclusion
The investment aligns with the vision of other key stakeholders. Praveg Patil, Head of Asia Pacific, Impact & Private Equity at M&G, stated: “Investing in forward-thinking companies like Tyme Group is vital for enhancing financial inclusion in underbanked regions.
“M&G’s Catalyst is focused on backing transformative projects that create meaningful social change.
“Through this investment, we are addressing the needs of communities historically marginalized from the financial system, striving to build a more inclusive financial ecosystem.”
Growth and future prospects
Karl Westvig, CEO of TymeBank, the flagship bank of Tyme Group in South Africa, underscored the transformative impact this funding will have on Tyme’s growth strategy.
“This funding will accelerate our growth strategy, helping us realize our ambition of being among the top three retail banks in South Africa within three years,” Westvig said.
“Moreover, the enhanced credibility and visibility in the market gained through our partnership with Nubank, along with the substantial networks provided by global investors like GIC and Berkshire Hathaway, facilitate our pathway toward a potential listing by 2028.”
This landmark partnership with Nubank marks a crucial turning point for Tyme, establishing a foundation for rapid expansion, an extended market presence, and significant contributions to financial inclusion in Africa and Southeast Asia.
With the support of a global digital banking leader and other prominent investors, Tyme is well-positioned to revolutionize the financial services landscape in underserved markets worldwide.
Having established its presence in South Africa and the Philippines, Tyme is now gearing up for expansion into Vietnam and Indonesia.
*This article was originally published in our sister publication techfinancials.co.za
