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Nubank investment catapults Tyme group into unicorn territory, promising future growth

Nubank investment catapults Tyme group into unicorn territory, promising future growth
Neesa Moodley
By Neesa Moodley
17 Dec 2024
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A unicorn company is a privately held startup company with a valuation of $1-billion or more. Tyme Group has achieved this status with a valuation of US$1.5-billion (about R26.7-billion) following the capital raise. The term was first coined in 2013 by venture capitalist Aileen Lee to emphasise the rarity of such successful startups.

Tyme Group’s latest capital raise has catapulted the company into unicorn status, making it the second South African unicorn company and one of less than 10 on the continent.

Latin American Nubank, one of the largest digital financial services platforms on the globe, led the investment in the oversubscribed Series D capital raise, with US$150-million in the pot, followed by M&G’s Catalyst which has invested US$50-million. Existing shareholders are investing a further US$50-million. 

A unicorn company is a privately held startup company with a valuation of $1-billion or more. Tyme Group has achieved this status with a valuation of US$1.5-billion (about R26.7-billion) following the capital raise.  The term was first coined in 2013 by venture capitalist Aileen Lee to emphasise the rarity of such successful startups.

The other South African unicorn is Promasidor, a multi-category food and beverage company known for brands like Cowbell, Drink-O-Pop, and Twisco, which achieved unicorn status in December 2016, with a valuation of $1.6-billion.

The transaction will see African Rainbow Capital (ARC) and Apis Growth Fund II remain the largest and second-largest shareholders respectively. Tyme’s other investors include the Founders, the Ethos AI Fund, Tencent, The Gokongwei Group, British International Investment (BII), Norrsken22, Blue Earth and Lavender Hill Capital Partners. 

Driving financial inclusion


“Nubank transformed financial services in Brazil. We are excited by the value that Nubank’s thought partnership and advice can bring to Tyme, particularly in areas such as data analytics, credit risk management, product development and marketing — levers we believe are key to achieving leadership in our markets. This is a moment of great significance for Tyme,” said Coen Jonker, founder and chief executive of Tyme Group. 

David Vélez, the founder and chief executive of Nubank, said the group had always believed that the future of financial services globally was of digitally native companies. 

“We have met dozens of teams across different geographies, and we think that Tyme Group is extremely well positioned to be a digital bank leader in Africa and Southeast Asia. We are excited to work with Tyme to share many of our learnings of scaling this model to hundreds of millions of customers,” he said.

Praveg Patil, head of Asia Pacific, impact and private equity at M&G, commented that investing in innovative companies like Tyme Group was essential for driving financial inclusion in underserved markets.” 

Karl Westvig, the chief executive officer of TymeBank, Tyme Group’s flagship bank in South Africa, pointed out that the latest funding round was likely to propel the bank’s growth strategy, enabling it to realise its stated goal of becoming one of the top three retail banks in South Africa in the next three years. 

“Additionally, the enhanced credibility and market visibility that comes with the Nubank affiliation, along with the large established networks of global investors, including GIC, Berkshire Hathaway and others, helps pave the group’s path towards a potential listing by 2028,” he said.

Patrice Motsepe, the chairperson of major shareholder African Rainbow Capital, said that as the long-term strategic shareholder in Tyme, African Rainbow Capital “enthusiastically welcomes 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”.

TymeBank, launched in 2019, has achieved a 29% year-on-year growth rate, while GoTyme, in partnership with the Gokongwei Group, has achieved extraordinary traction of 317% year-on-year growth since its October 2022 launch. Cumulatively, Tyme has amassed 15 million customers in Africa and Southeast Asia since its inception.

How it all came together


The deal was facilitated through Endeavor’s global entrepreneurial network. 

“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 Alison Collier, the managing director of Endeavor South Africa. “It’s an example of how aligning the right partners at the right time can create exponential value.”  

Endeavor’s global network proved instrumental in connecting Tyme with the Gokongwei Group, a crucial strategic partner for its expansion into the Philippines, among others. Similarly, the introduction to Nubank was facilitated by Endeavor after a meeting at one of its events in New York, where Endeavor’s headquarters are located. This led to direct engagements between the two companies, culminating in a deal that positions Tyme for further growth in emerging markets.  

“This investment represents a major milestone for Tyme and validates its innovative approach to digital banking,” said Collier. “Nubank’s market cap of $68-billion is just shy of South Africa’s total banking sector of $85-billion, including Capitec. Both Nubank and Capitec’s market caps have risen by over 70% this year.” DM

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