South Africa’s digital lender Tyme Group has raised $250 million in a Series D round at a $1.5 billion valuation. With the valuation, Tyme becomes Africa’s ninth unicorn, two months after Nigeria’s Moniepoint hit the billion-dollar threshold. Tyme plans for an initial public offering by the end of 2028.
The funding round was led by Nu Holdings, the parent company of Nu Bank, Latin America’s most valuable fintech, which invested $150 million for a 10% stake. M&G Catalyst Fund and existing investors also participated in the round. The latest funding signals an investor return to investing in the continent after a slowdown in funding.
As with other unicorns, the major participants of this funding round were global investors, further highlighting the scarcity of growth capital on the continent. Tyme’s valuation continues the dominance of fintechs amongst Africa’s unicorns. Seven out of nine African unicorns are fintechs.
Nubank’s participation in the deal is part of the bank’s plan to expand outside its Latin American markets. The bank wants to replicate its successes in Latin America by tapping into the growth potential of emerging markets like Africa and South Asia.
Launched in 2019, Tyme Group operates through a hybrid model of online and physical banking, offering checking and savings accounts, debit cards, buy-now-pay-later credit. With 15 million customers, the company claimed to have extended over $600 million in financing to small businesses in South Africa and the Philippines. In August 2024, its South African subsidiary TymeBank announced plans to launch in Indonesia by the end of 2024.
The $250 million funding brings Tyme’s total funding to about $600 million. African Rainbow Capital Investments Ltd. will remain Tyme’s lead shareholder with a 40% stake in the business.
