Tyme Group, a leading digital financial services provider, has been crowned South Africa’s second unicorn company following a successful capital raise that valued the business at approximately R26.7-billion. A unicorn company is a rare privately held startup with a valuation exceeding 1-billion USD, a term first coined by venture capitalist Aileen Lee in 2013 to highlight the exceptional nature of such successful enterprises.
The latest capital influx came from a Series D funding round, with Latin American digital financial giant Nubank taking the lead by contributing 150-million USD to the oversubscribed round. M&G’s Catalyst also played a role, investing 5-million USD. Tyme’s rise to unicorn status marks a significant achievement not just for the company but for the South African tech and financial landscape, positioning it as one of fewer than ten unicorns across the African continent.
Tyme Group’s meteoric growth has been supported by a range of investors, including African Rainbow Capital (ARC), Apis Growth Fund II, Tencent, the Gokongwei Group, and British International Investment (BII). Coen Jonker, founder and CEO of Tyme Group, expressed enthusiasm about Nubank’s involvement, highlighting the potential for the partnership to bring crucial expertise in areas such as credit risk management, data analytics, and product development to accelerate Tyme’s regional leadership ambitions.
Nubank’s founder, David Vélez, shared his confidence in Tyme Group’s prospects, stating, “We believe Tyme Group is extremely well positioned to be a leader in digital banking in Africa and Southeast Asia.” The collaboration with Nubank will not only bring valuable insight but also help Tyme scale rapidly in emerging markets. Tyme Group’s flagship bank, TymeBank, has already achieved notable success, with a 29% year-on-year growth rate, and GoTyme, its joint venture with the Gokongwei Group, boasts a staggering 317% growth since its launch in October 2022.
Tyme’s vision is to become one of South Africa’s top three retail banks within the next three years. With the new funding and the backing of global investors like Berkshire Hathaway and GIC, Tyme is also setting its sights on a potential listing by 2028, further solidifying its position in the global financial sector.
Patrice Motsepe, the chairperson of African Rainbow Capital, expressed his excitement about the partnership with Nubank, saying it would significantly accelerate Tyme’s growth trajectory. With the backing of international heavyweights, the company is poised for exponential expansion, particularly in emerging markets like Southeast Asia and Africa.
Comments