Tyme, a South African digital bank, has raised $250 million in a Series D funding round, with a notable $150 million investment from Nubank, the world’s largest digital bank by market value. This move elevates Tyme to unicorn status and signals a growing trend in the fintech industry where digital banks are rapidly scaling their operations across continents.
Tyme, founded in 2019, initially focused on revolutionising the South African banking sector. Backed by Patrice Motsepe’s African Rainbow Capital, TymeBank reached over 10 million customers in South Africa and 5 million in the Philippines. By the end of 2023, the digital bank recorded its first profit, showcasing the effectiveness of its digital-only business model in emerging markets.
Nubank’s Strategic Investment
This latest investment cements Tyme’s position as a leader in the African fintech space and highlights Nubank’s ambition to expand beyond Latin America. Nubank’s $150 million stake acquisition emphasizes its confidence in the potential of digital banking solutions in Africa and Southeast Asia.
Nubank, founded in 2013, has become a powerhouse in the fintech space, with a market capitalisation of $56 billion. Its expansion into African and Southeast Asian markets aligns with the growing global interest in emerging digital banking solutions. Nubank’s partnership with Tyme further strengthens this trend, with the South African bank planning to leverage its success in the local market to fuel its growth in Southeast Asia, particularly in Vietnam and Indonesia.
Expanding to Southeast Asia
The new funding will aid Tyme’s expansion into Southeast Asia, which has already launched GoTyme in the Philippines. Tyme’s next target is Vietnam, which plans to establish a digital bank, capitalising on its ability to offer innovative, tech-driven banking solutions.
Tyme’s growth trajectory in South Africa and the Philippines has been impressive, and the bank now aims to become one of the top three retail banks in South Africa within the next three years. As part of its Southeast Asian expansion, Tyme has already established a team of 300 technology professionals in Vietnam, reinforcing its commitment to the region’s digital banking sector.
Fintech’s Global Growth
The African fintech market is on an upward trajectory, with revenues expected to reach $60 billion by 2030. Countries like South Africa, Nigeria, Kenya, and Egypt are expected to drive this expansion, with a compound annual growth rate of 32%. Tyme’s investment from Nubank is part of this larger shift, with both companies poised to play a significant role in shaping the future of digital banking in Africa and beyond.
Cross-continental partnerships are becoming more common as firms tap into the rapid adoption of digital banking in emerging markets. This strategic alignment could help Tyme and Nubank capitalize on the potential of digital banking in new markets, particularly those in Southeast Asia.
