TymeBank becomes a unicorn

Latin America’s Nubank leads newly minted Unicorn Tyme’s Capital Raise

• Tyme Group (TymeBank) reaches unicorn status with a US $.1.5 billion (~R26.7 billion) valuation after securing US$250 million in latest capital raise
• Tyme welcomes strategic investor Nubank, one of the world’s largest digital financial services platforms, to fuel next phase of growth
• African Rainbow Capital remains Tyme’s majority shareholder
• Homegrown success story – exporting Tyme from South Africa to the world

Johannesburg, South Africa – 17 December 2024

Multi-country digital banking group Tyme today announced its Series D capital raise, which secured a total of US$250 million in funding. Significantly, Nubank, one of the world’s largest digital financial service platforms, with over 110 million customers, has joined its shareholder base, along with M&G’s Catalyst as the second new shareholder.

Tyme, which has its roots in South Africa, is one of the fastest growing digital banks in emerging markets, with over 15 million customers across South Africa and the Philippines. TymeBank, with its 10 million customers, is the group’s flagship bank and the first digital bank to reach profitability in Africa.

What the Nubank Partnership means for Tyme

The Nubank partnership brings significant expertise and resources to Tyme, positioning the company well to expand its market presence.

“Nubank transformed financial services in Brazil. We are excited by the value that Nubank’s thought partnership and advice can bring to Tyme particularly in areas such as data analytics, credit risk management, product development and marketing – levers we believe are key to achieving leadership in our markets. This is a moment of great significance for Tyme,” said Coen Jonker, Founder and CEO of Tyme Group

David Vélez, Founder and CEO of Nubank, added: “Since the beginning of Nubank, we have believed that the future of financial services globally is of digitally native companies. We have met dozens of teams across different geographies, and we think that Tyme Group is extremely well-positioned to be a digital bank leader in Africa and Southeast Asia. We are excited to work with Tyme to share many of our learnings of scaling this model to hundreds of millions of customers.”

Investment in financial inclusion & digital banking innovation

Praveg Patil, Head of Asia Pacific, Impact & Private Equity at M&G, commented: “Investing in innovative companies like Tyme Group is essential for driving financial inclusion in underserved markets. This partnership exemplifies M&G’s Catalyst mission to support transformative initiatives that create lasting social impact. By leveraging technology for accessible financial solutions, we are addressing the needs of the communities traditionally excluded from the financial system and building a more inclusive financial ecosystem.”

Karl Westvig, CEO of TymeBank, Tyme Group’s flagship bank in South Africa, highlighted: “This funding will propel our growth strategy, enabling us to realise our stated goal of being a top three retail bank in South Africa in the next three years. Additionally, the enhanced credibility and market visibility that comes with the affiliation with Nubank, along with the large established networks of global investors, including GIC, Berkshire Hathaway and others, helps pave the group’s path towards a potential listing by 2028.”

Commenting on the Nubank partnership, Patrice Motsepe, Chairperson of major shareholder African Rainbow Capital, said: “As the long-term strategic shareholder in Tyme, we enthusiastically welcome the partnership with leading global digital bank, Nubank, as we are convinced this will lead to an even higher and significantly accelerated growth trajectory for the multi-country Tyme Group.”

More about the capital raise that led to Tyme’s Unicorn status

The oversubscribed Series D capital raise was led by Nubank, which invested US$150 million, with M&G’s Catalyst subscribing for US$50 million. Existing shareholders are investing a further US$50 million. The transaction will see ARC and Apis Growth Fund II (‘Apis’) remain as the largest and second largest shareholders respectively. Tyme’s other investors includes the Founders, The Ethos AI Fund, Tencent, The Gokongwei Group, British International Investment (BII), Norrsken 22, Blue Earth and Lavender Hill Capital Partners.

There are over 1,400 unicorns globally and only eight recorded in Africa. This latest milestone –underscores Tyme’s market potential and sets the stage for an exciting new era for the fast-growing group.

“We are proud to join the elite club of African Unicorns, and this achievement serves to fuel our team’s ambition to be listing-ready in the next four to five years,” said Westvig.

Tyme wishes to thank the law firm Webber Wentzel, Rothschild & Co, Avista Advisory Partners and Ekta Partners for their support and invaluable advice on the transaction.

About TymeBank

TymeBank is currently one of the world’s fastest-growing digital banks and the first digital bank to reach profitability in Africa, with over 10 million customers since launching in February 2019. The bank is founded on simplicity, transparency and affordability and is designed to make digital banking accessible and affordable to all South Africans across the economic spectrum. TymeBank has no monthly banking fees; it takes less than five minutes to open an account and in most cases transaction costs are 30 to 50% lower than what customers would pay at other local banks. Through a distribution partnership with Pick n Pay, Boxer, and TFG stores, TymeBank has over 1,000 kiosks and 15,000 retail points across the country. TymeBank is a member of the Tyme Group of companies with headquarters in Singapore.

For more information visit https://gotyme.co.za

About Tyme

Tyme is a multi-country digital banking group focused on serving consumers and SMEs in emerging markets. Headquartered in Singapore, with a technology and product development hub in Vietnam, Tyme designs, builds, and operates digital banks, with a particular expertise in emerging markets. Tyme recognises the unique challenges of banking in emerging markets, and leverages technology innovatively, through a high tech-high touch approach, to meet the needs of emerging market customers. Following TymeBank in South Africa, Tyme launched its second digital bank, GoTyme, in the Philippines, in partnership with the Gokongwei Group, in October 2022. Across the Group, Tyme now serves over 15 million customers.

For more information, please visit www.tyme.com.

About Nu

Nu is one of the world’s largest digital financial services platforms, serving 110 million customers across Brazil, Mexico, and Colombia. The company has been leading an industry transformation by leveraging data and proprietary technology to develop innovative products and services. Guided by its mission to fight complexity and empower people, Nu caters to customers’ complete financial journey, promoting financial access and advancement with responsible lending and transparency. The company is powered by an efficient and scalable business model that combines low cost to serve with growing returns. Nu’s impact has been recognized in multiple awards, including Time 100 Companies, Fast Company’s Most Innovative Companies, and Forbes World’s Best Banks.

For more information, please visit Nubank

About M&G Investments

M&G Investments is part of M&G plc, a savings and investment business which was formed in 2017 through the merger of Prudential plc’s UK and Europe savings and insurance operation and M&G, its wholly owned international investment manager. M&G plc listed as an independent company on the London Stock Exchange in October 2019 and has US$437.5 billion of assets under management (as at 30 June 2024). M&G plc has around 4.6 million customers in the UK, Europe, the Americas and Asia, including individual savers and investors, life insurance policy holders and pension scheme members.

For nearly nine decades M&G Investments has been helping its customers to prosper by putting investments to work, which in turn creates jobs, homes and vital infrastructure in the real economy. Its investment solutions span equities, fixed income, multi asset, cash, private debt, infrastructure and real estate.

M&G recognises the importance of responsible investing and is a signatory to the United Nations Principles for Responsible Investment (UNPRI). M&G plc has committed to achieve net zero emissions by 2050 at the latest, across our investment portfolios and operations.

For more information, please visit www.mandg.com