Brazilian digital banking group, Nubank, a publicly-traded company on the New York Stock Exchange, has invested $150 million (R2.69 billion) in South African-born fintech, Tyme Group.
Tyme Group, a global digital banking group head-quartered in Singapore and backed by South Africa Africa Rainbow Capital (ARC), operates two high-growth digital banks: TymeBank in South Africa and GoTyme Bank in the Philippines. The deal with Nubank was part of a successful $250m capital raise.
The capital will accelerate Tyme Group’s expansion, enhance its technology platform, and strengthen its position in key markets.
Its ambition is to be a top three retail bank in South Africa within the next three years, and list on the stock exchange by 2028, said the lead shareholder in Tyme Group with a 40% stake, JSE-listed African Rainbow Capital Investments (ARCI) said in a statement yesterday.
The deal appeared favourably received by JSE investors as ARCI’s share price surged 7.6% to R8.07 yesterday afternoon, at a time when the JSE All Share Index was down 0.57%.
The successful completion of the capital raise brought Tyme Group’s valuation to $1.5bn, underscoring its potential to become a leading digital bank in Africa and Southeast Asia.
With operations in Latin America and Europe, Nubank brings resources and expertise to its partnership with Tyme’s complementary footprint in Africa and Southeast Asia.
The Brazilian fintech giant, which has a customer base of over 100 million and $8bn in cash reserves, is well-positioned to accelerate the scaling of Tyme’s operations both in its current and new markets.
Nubank, with its $150m investment, led the funding round. M&G Catalyst Fund invested $50m while the remaining $50m was invested by Tyme Group existing shareholders, including ARCI.
“As a long-term strategic shareholder in Tyme Group, 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,” said ARC chairman, Patrice Motsepe.
He said Tyme Group had experienced rapid growth since its inception, driven by its digital solutions and customer focus.
TymeBank, launched in 2019, has surpassed 10 million customers with a 29% year-on-year growth rate, while GoTyme, in partnership with the Gokongwei Group, has seen extraordinary traction of 317% year-on-year growth, amassing over 4 million customers since its October 2022 launch.
The deal was facilitated through the Endeavor global entrepreneurial network and showcases how curated connections can drive transformative business outcomes.
“This investment is a milestone for Tyme. Nubank’s market cap of $68bn is just shy of South Africa’s total banking sector of $85bn, including Capitec. Both Nubank and Capitec’s market caps have risen by over 70% this year,” said Alison Collier, managing director of Endeavor South Africa in a statement.
“This partnership between Nubank and Tyme highlights the essence of Endeavor’s mission, which is to connect high-impact entrepreneurs from emerging markets with opportunities that allow them to scale beyond borders,” said Collier.
Tyme’s relationship with Endeavor began in 2021 when the company joined the Endeavor South Africa network. Initially supported through mutual mentorship, the partnership evolved to include investments via our global co-investment fund and Endeavor’s South African-focused Harvest Fund.
Recently, Tjaart van der Walt, co-founder and CEO of TymeBank, joined the Endeavor South Africa board.
Other recent deals between Endeavor companies include Turkish fintech Papara’s acquisition of Pakistani SadaPay in May 2024, and the merger between ecommerce platforms Egyptian MaxAB and Kenyan Wasoko in August this year.
Endeavor’s global VC Fund has made over 325 investments in 30 countries, with nearly a quarter of its portfolio in fintech, including investing in Tyme.
BUSINESS REPORT