Tyme Group has raised $250 million in a Series D funding round which now values the digital bank at $1.5 billion. The fundraising included a $150 million investment from Latin America’s Nubank for a 10% stake.
Through the investment, Nubank, which has over 110 million customers across Brazil, Mexico and Canada, is looking to pursue the Southeast Asia and Africa markets.
“It is a unique vote of confidence in our business by the world leaders in our industry, essentially,” Coenraad Jonker, chief executive officer and co-founder of Tyme, said in an interview with Bloomberg.
“They do not have plans to organically grow into Southeast Asia,” said Jonker, and its investment “is really the bet that they are taking as Nubank in Southeast Asia and Africa.”
According to further reporting my Bloomberg, M&G’s Catalyst fund also put in $50 million, while existing shareholders invested a further $50 million, Tyme said. Its current backers include Tencent Holdings Ltd., Gokongwei Group, and Norrsken22.
Motsepe’s African Rainbow Capital Investments Ltd. will remain Tyme’s lead shareholder with a 40% stake, Jonker said. “Our status as South Africa’s only Black-owned and Black-controlled commercial bank actually remains in place.”
Tyme Group is headquartered in Singapore but operates as TymeBank in South Africa, where it has racked up more than 10 million customers, and in the Philippines via a joint venture with Gokongwei Group. The lender has more than 15 million customers across the group, Jonker said.
The lender started offering merchant cash advances in Vietnam in the second quarter, and has signed its first commercial transactions in Indonesia where it recently incorporated, he added. Tyme is also looking at acquisition targets — and is willing to spend tens of millions of dollars — in order to gain an Indonesian banking license, according to the chairman.
“Job number one is to become the top retail bank in the Philippines. The next job is to repeat that in Indonesia,” Jonker said. The digital lender is entering a competitive arena with big incumbents including Bank Mandiri and Bank Rakyat Indonesia, as well as several banks backed by the region’s top tech companies.
The latest fundraise will likely be the last as the lender begins preparations for an initial public offering by the end of 2028.
“The next three to four years, we will be a lot more focused on our customers and on excellence and execution in the market and making sure we get the shape of the business right for listing, which includes making sure that in South Africa we operate the business at the return on equity level above 30%,” Jonker said.
Info source: Bloomberg