Africa-Asia digital bank Tyme joins unicorn club with US$1.5bn valuation

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Singapore-headquartered South African digital bank Tyme has achieved unicorn status with a valuation exceeding US$1bn following its latest funding round. Backed by South African billionaire Patrice Motsepe, the bank aims to grow its footprint in Vietnam and Indonesia, adding to its operations in South Africa and the Philippines, with the ambition of becoming a major player in emerging markets digital banking.

Tyme Group recently secured US$250m in fresh capital, led by Brazil’s Nubank, one of the world’s largest digital financial services platforms, which invested US$150m. This funding round elevated Tyme’s valuation to US$1.5bn, making it one of a select few African-founded unicorns.

Launched in 2018, TymeBank – as its South African entity is called – operates a hybrid model that blends digital channels with physical customer touchpoints. While it doesn’t have traditional branches, the bank has over 1,000 self-service kiosks located within the stores of retailers such as Pick n Pay and The Foschini Group. At these kiosks, customers can open accounts, capture biometric data, and print debit cards with just an ID number and mobile phone. Account holders can deposit or withdraw funds at any checkout counter within the bank's retail partner network. TymeBank also provides account management through its app and online platform, serving approximately 10 million customers in South Africa. The bank achieved its first monthly profit in December 2023, less than five years after its launch.

After its initial traction in South Africa, Tyme shifted its headquarters to Singapore to better position itself for expansion into Asia. Executive chairman Coenraad Jonker explained that the move was driven by tax considerations and the preference of Asian businesses to work with Singapore-based entities.

In 2022, Tyme launched GoTyme in the Philippines through a joint venture with Filipino conglomerate Gokongwei Group. The business has since attracted about five million customers, and, according to the company, is on track to achieve profitability within the next 18 months. In early 2024, Tyme entered the Vietnamese market, initially rolling out its merchant cash advance business financing product. Plans are underway to introduce retail banking services in partnership with a local entity, as Vietnam’s banking regulations limit foreign ownership to 20%.

Tyme is now setting its sights on Indonesia, where it has partnered with Finfra, a lending-as-a-service provider offering invoice financing, payroll financing, and working capital solutions. Initially, Tyme will leverage Finfra’s licence to launch merchant cash advances in the market, with ambitions to secure its own banking licence for retail banking expansion. Tyme Group has signalled its intention to list on the New York Stock Exchange in the coming years.

 

References

‘TymeBank may soon be owned via Singapore, as Filipino version of bank takes shape’, News24, 23 February 2021

‘TymeBank achieves major financial milestone reaches profitability in under five years’, TymeBank, 16 January 2024

‘TymeBank's plan to conquer new markets: Merchant cash financing’, News24, 09 July 2024

‘Exclusive: TymeBank to launch in Indonesia as it continues Southeast Asia focus’, TechCabal, 23 August 2024

‘Financial results for the year ended 30 June 2024’, ARC, 16 September 2024

‘Nubank announces investment in Tyme Group, a digital bank with operations in South Africa and the Philippines’, Nubank, 16 December 2024

‘Motsepe-backed 'unicorn' Tyme gets billions for massive Asia push’, News24, 18 December 2024

‘TymeBank’s big growth plans: Q&A with CEO Karl Westvig’, TechCentral, 20 December 2024