DailySun
Johannesburg – Tyme, the innovative organization behind TymeBank in South Africa and GoTyme in the Philippines, has achieved a remarkable feat by securing a substantial R4.5 billion investment from Nubank, the world’s largest independently operating digital bank.
This strategic partnership not only highlights Nubank’s confidence in Tyme’s cutting-edge banking model but also solidifies Tyme’s position as a transformative force within the financial services sector across emerging markets.
The funding was made possible through a successful Series D funding round, raising $250 million (R4.5 billion), resulting in Tyme’s valuation climbing to $1.5 billion (R27 billion).
Nubank’s decision to invest reflects its recognition of Tyme’s potential to revolutionize banking services, akin to Nubank’s success in Brazil.
With a market capitalization of $68 billion, Nubank’s valuation is closely matched to the entirety of South Africa’s banking sector, which is valued at $85 billion, inclusive of Capitec.
Both Nubank and Capitec have notably seen a market cap increase of over 70% this year, demonstrating strong investor belief in digital banking solutions.
Nubank stands as one of the largest digital financial services platforms globally, serving 110 million customers across Brazil, Mexico, and Colombia.
Strategic Advantages for Tyme
The collaboration with Nubank provides Tyme with invaluable insights and resources, especially in areas like data analytics, credit risk management, product development, and marketing.
These components are critical drivers that will advance Tyme’s expansion and help it strive towards leadership in key markets.
“Nubank revolutionized financial services in Brazil,” remarked Coen Jonker, Founder and CEO of Tyme Group.
“We are excited about the value that Nubank’s partnership and expertise can bring to Tyme, particularly in data analytics, credit risk management, product innovation, and marketing.
“This is an important milestone for Tyme.”
A Shared Vision for Financial Inclusion
David Vélez, Founder and CEO of Nubank, emphasized the global transition towards digitally oriented financial services.
“From the beginning, Nubank has recognized that the future of financial services lies with digitally native companies.
“We have worked with numerous teams across different areas and believe that Tyme Group is excellently positioned to emerge as a leading digital bank in Africa and Southeast Asia.
“We look forward to joining forces with Tyme to share our experiences in scaling this model to serve hundreds of millions of customers.”
Expanding Financial Inclusion
This investment aligns with the vision of other key stakeholders. Praveg Patil, Head of Asia Pacific, Impact & Private Equity at M&G, commented: “Investing in visionary companies like Tyme Group is essential for fostering financial inclusion in underserved regions.
“M&G’s Catalyst focuses on supporting transformative projects that make a lasting social impact.
“Through this investment, we aim to address the needs of communities historically marginalized from the financial system, working towards a more inclusive financial ecosystem.”
Growth and Future Prospects
Karl Westvig, CEO of TymeBank, the flagship bank of Tyme Group in South Africa, stressed the transformative effect that the funding will have on Tyme’s growth strategy.
“This funding will expedite our growth plans, allowing us to secure a place among the top three retail banks in South Africa within three years,” Westvig asserted.
“Moreover, the increased credibility and market visibility that comes with partnering with Nubank, along with the extensive networks of global investors like GIC and Berkshire Hathaway, will enhance our trajectory towards a potential listing by 2028.”
This landmark partnership with Nubank marks a pivotal advancement for Tyme, laying the foundation for accelerated growth, an expanded market reach, and significant contributions to financial inclusion efforts in Africa and Southeast Asia.
With the support of a global leader in digital banking and other prominent investors, Tyme is ready to reshape the financial services landscape in underserved markets worldwide.
Having established a presence in South Africa and the Philippines, Tyme is now preparing to expand into Vietnam and Indonesia.
*This article first appeared in our sister publication techfinancials.co.za
