South Africa's Tyme Group Raises $250 Million, Becomes Africa's Ninth Unicorn

Sophia Steele

Sophia Steele

December 17, 2024 · 3 min read
South Africa's Tyme Group Raises $250 Million, Becomes Africa's Ninth Unicorn

South Africa's digital lender Tyme Group has raised $250 million in a Series D round, valuing the company at $1.5 billion and making it Africa's ninth unicorn. This milestone comes just two months after Nigeria's Moniepoint attained the billion-dollar mark, signaling a resurgence of investor interest in the continent.

The funding round was led by Nu Holdings, the parent company of Nu Bank, Latin America's most valuable fintech, which invested $150 million for a 10% stake. M&G Catalyst Fund and existing investors also participated in the round. This significant investment is expected to be the company's last raise before it prepares for an initial public offering (IPO) by the end of 2028.

The involvement of global investors, such as Nu Holdings, highlights the scarcity of growth capital on the continent. This trend is consistent with the dominance of fintechs amongst Africa's unicorns, with seven out of nine unicorns operating in the fintech space. The participation of Nu Holdings is also part of the bank's plan to expand outside its Latin American markets, tapping into the growth potential of emerging markets like Africa and South Asia.

Tyme Group, launched in 2019, operates through a hybrid model of online and physical banking, offering checking and savings accounts, debit cards, and buy-now-pay-later credit. The company has extended over $600 million in financing to small businesses in South Africa and the Philippines, with a customer base of 15 million. In August 2024, its South African subsidiary TymeBank announced plans to launch in Indonesia by the end of 2024.

The $250 million funding brings Tyme's total funding to about $600 million. African Rainbow Capital Investments Ltd. will remain Tyme's lead shareholder with a 40% stake in the business. This significant investment is expected to further accelerate Tyme's growth and expansion plans, solidifying its position as a leading fintech player in Africa.

The emergence of Tyme Group as Africa's ninth unicorn underscores the growing importance of fintech in the continent's economy. As the company prepares for its IPO, it will be interesting to observe how its growth trajectory unfolds and the impact it will have on the broader fintech ecosystem in Africa.

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