South Africa’s Tyme Group to expand operations with new funding

South African digital bank Tyme Group has secured $250 million in a Series D funding round, achieving a valuation of $1.5 billion and entering the ranks of Africa’s unicorns.

The funding was led by Nubank, the world’s largest digital bank by market value, which invested $150 million for a 10% stake.

Additional contributions came from M&G Catalyst Fund and existing shareholders.

This investment signifies Nubank’s expansion beyond Latin America, marking its confidence in the potential of Africa’s fintech sector.

With a market capitalization of $56 billion and over 100 million customers in Brazil, Mexico, and Colombia, Nubank aims to leverage Tyme’s growth in South Africa and Southeast Asia. Tyme plans to expand its operations to Vietnam and Indonesia, building on its success in the Philippines, where its GoTyme platform has attracted five million users.

Founded in 2019, Tyme operates through a hybrid digital banking model, combining online services with physical touchpoints. In South Africa, its TymeBank brand has grown to 10 million customers, supported by partnerships with local retailers.

The bank focuses on underserved markets, offering low-cost, technology-driven financial solutions, including checking accounts, savings products, and credit options like buy-now-pay-later schemes. It has raised over $400 million in customer deposits and extended $600 million in financing to small businesses across its markets.

The funding round highlighted renewed investor interest in African fintechs, which are driving financial inclusion across the continent. Africa remains home to 350 million unbanked adults, representing significant growth opportunities.

Tyme has plans for an initial public offering by 2028, with a secondary listing in South Africa.

The company aims to become a top-three retail bank in South Africa within three years and expand into underserved African markets. Its $1.5 billion valuation and growing international partnerships position it as a key player in Africa’s fintech revolution, further solidifying the continent’s appeal to global investors.