Johannesburg – Tyme, the innovative company behind TymeBank in South Africa and GoTyme in the Philippines, has achieved a major milestone by securing a significant R4.5 billion investment from Nubank, the largest independent digital bank in the world.

This strategic partnership not only highlights Nubank’s confidence in Tyme’s pioneering banking model but also strengthens Tyme’s position as a transformative force in the financial services sector across emerging markets.

The funding is part of a successful Series D round, which raised $250 million (R4.5 billion), boosting Tyme’s overall valuation to $1.5 billion (R27 billion).

Nubank’s decision to invest reflects its recognition of Tyme’s potential to revolutionize banking services, much like Nubank has done in Brazil.

With a market value of $68 billion, Nubank’s valuation is nearly comparable to the total valuation of South Africa’s banking sector, which is at $85 billion, including Capitec.

Both Nubank and Capitec have seen significant market capitalization growth of over 70% this year, demonstrating strong investor confidence in digital banking solutions.

Nubank stands as one of the largest digital financial services platforms globally, with 110 million customers spread across Brazil, Mexico, and Colombia.

Strategic advantages for Tyme

The collaboration with Nubank provides Tyme with invaluable expertise and resources, especially in areas like data analytics, credit risk management, product development, and marketing.

These elements are essential for driving Tyme’s growth and achieving its ambitions in key markets.

“Nubank has redefined financial services in Brazil,” said Coen Jonker, Founder and CEO of Tyme Group.

“We are excited about the value that Nubank’s collaboration and insights can bring to Tyme, particularly in data analytics, credit risk management, product development, and marketing.

“This is a landmark moment for Tyme.”

A shared vision for financial inclusion

David Vélez, Founder and CEO of Nubank, emphasized the global transition towards digitally native financial services.

“From the beginning, Nubank has been committed to the belief that the future of financial services is rooted in digitally native companies.

“We have collaborated with several teams across various regions and believe that Tyme Group is ideally positioned to emerge as a leading digital bank in Africa and Southeast Asia.

“We look forward to partnering with Tyme to share our experiences in scaling this model to reach hundreds of millions of customers.”

Expanding financial inclusion

The investment aligns with the goals of other significant stakeholders. Praveg Patil, Head of Asia Pacific, Impact & Private Equity at M&G, stated: “Investing in visionary companies like Tyme Group is key to fostering financial inclusion in underserved regions.

“M&G’s Catalyst is focused on investing in transformative initiatives that drive enduring social impact.

“Through this investment, we address the needs of communities historically marginalized from the financial system, aiming to create a more inclusive financial ecosystem.”

Growth and future prospects

Karl Westvig, CEO of TymeBank, Tyme Group’s main bank in South Africa, highlighted the transformative impact of this funding on Tyme’s growth strategy.

“This investment will speed up our growth efforts, allowing us to reach our objective of becoming one of the top three retail banks in South Africa within three years,” Westvig noted.

“Moreover, the increased credibility and market exposure that accompany our partnership with Nubank, in conjunction with the extensive networks of global investors such as GIC and Berkshire Hathaway, will aid our potential listing by 2028.”

This landmark partnership with Nubank marks a crucial turning point for Tyme, laying the foundation for accelerated growth, an expanded market presence, and significant contributions to financial inclusion in Africa and Southeast Asia.

With the support of a global digital banking leader and other esteemed investors, Tyme is positioned to reshape 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 first appeared in our sister publication techfinancials.co.za