Tyme Group Attains Unicorn Status with $1.5 Billion Valuation Led by Patrice Motsepe

In a significant stride for African fintech, Tyme Group, under the aegis of South African billionaire Patrice Motsepe, raised a remarkable $250 million in its latest funding round, catapulting the digital lender's valuation to $1.5 billion and earning it the coveted unicorn status. The round saw substantial investments from prominent players including Nu Holdings and M&G’s Catalyst fund, placing Tyme among the elite unicorns of Africa.

The investment was led by a $150 million contribution from Nu Holdings Ltd, the powerhouse behind Nubank – the largest independent digital bank globally with a robust customer base spanning Brazil, Mexico, and Colombia. This move marks a strategic expansion into Southeast Asia and Africa for Nu Holdings, considering they do not have any organic growth plans in these regions.

M&G’s Catalyst fund also played a significant role with a $50 million investment, complemented by an additional $50 million from existing shareholders such as Tencent Holdings, Gokongwei Group, and Norrsken22.

Tyme Group, which operates TymeBank in South Africa and extends services to the Philippines and recently to Indonesia and Vietnam, now boasts a customer base exceeding 15 million across its networks. The company's ambitions are high, with plans for regional expansion, seeking acquisition opportunities to secure an Indonesian banking license, and potentially morphing into a leading retail bank in the Philippines and Indonesia.

Patrice Motsepe's African Rainbow Capital Investments remains the major shareholder, holding a 40% stake in Tyme, emphasizing its status as South Africa’s sole Black-owned and controlled commercial bank.

The funding will be crucial as Tyme prepares for an initial public offering scheduled for 2028. Over the next few years, the focus will intensely be on refining customer relations and operational excellence to ensure the business is IPO-ready, particularly targeting a return on equity level above 30% within its South African operations.

Tyme’s leap into unicorn status not only underscores the escalating investor confidence in the fintech sector but also highlights the potential of digital banking in emerging markets, setting a precedent for innovation and growth in the financial landscape of Africa and Southeast Asia.