Grace Ashiru
Tyme Group, a South African digital lending firm, has raised $250 million in a Series D round, elevating its valuation to $1.5 billion. This achievement marks Tyme as Africa’s ninth unicorn, joining Nigeria’s Moniepoint, which reached a billion-dollar valuation just two months earlier. The company has outlined plans for a public listing by 2028.
Nu Holdings, the parent company of Latin America’s leading fintech, Nu Bank, spearheaded the funding round with a $150 million investment for a 10% equity stake. M&G Catalyst Fund, alongside existing stakeholders, also contributed. This infusion of capital highlights a renewed investor interest in Africa after a period of reduced funding activity.
Similar to other unicorns, this funding round attracted primarily international investors, underscoring the limited availability of growth capital within Africa. Tyme’s valuation reinforces the fintech sector’s dominance, with seven of Africa’s nine unicorns emerging from this industry.
Nubank’s involvement in the deal aligns with its strategy to venture beyond Latin America. The bank aims to replicate its regional success by leveraging growth opportunities in emerging markets such as Africa and South Asia.
Founded in 2019, Tyme Group combines digital and physical banking to provide services such as savings and checking accounts, debit cards, and buy-now-pay-later credit options. Serving 15 million customers, the company has disbursed over $600 million in loans to small businesses across South Africa and the Philippines. In August 2024, its South African unit, TymeBank, unveiled plans to expand into Indonesia by year-end.
The $250 million investment raises Tyme’s total capital to approximately $600 million.African Rainbow Capital Investments Ltd. retains its position as the largest shareholder, holding 40% of the company’s equity.
