An online lender based in South Africa has successfully completed a Series D funding round, raising $250 million and reaching a valuation of $1.5 billion. This achievement marks the emergence of the ninth unicorn company in Africa, coming shortly after Nigeria’s Moniepoint reached a billion-dollar valuation. The company, known as Tyme Group, has plans to go public by the end of 2028.
The primary investor in this funding round was Nu Holdings, the parent company of Nu Bank, a leading fintech company in Latin America. Nu Holdings contributed $150 million for a 10% stake in Tyme Group. Other participants in the funding round included M&G Catalyst Fund and existing investors. This significant investment signals a resurgence of interest from investors in funding ventures in Africa after a period of reduced activity.
Like many other unicorns, Tyme Group attracted global investors for this funding round, underscoring the limited availability of growth capital within the continent. The valuation of Tyme Group further solidifies the prominence of fintech companies among Africa’s unicorn startups, with seven out of nine unicorns belonging to the fintech sector.
Nubank’s involvement in this funding round is part of the bank’s strategy to expand beyond its Latin American markets and venture into emerging markets like Africa and South Asia to replicate its previous successes.
Established in 2019, Tyme Group operates using a combination of online and physical banking services, offering various financial products such as checking and savings accounts, debit cards, and buy-now-pay-later credit options. With a customer base of 15 million, the company has provided over $600 million in financing to small businesses in South Africa and the Philippines. In addition, TymeBank, the South African subsidiary, has announced plans to launch in Indonesia by the end of 2024.
The successful completion of the $250 million funding round brings Tyme Group’s total funding to approximately $600 million. African Rainbow Capital Investments Ltd. will retain its position as the lead shareholder, holding a 40% stake in the business.