By SAO PAULO/JOHANNESBURG (Reuters) – Brazilian digital bank Nubank said it has invested $150 million in Tyme Group, a digital bank with 15 million customers in South Africa and the Philippines, funding that will help Tyme Group finance its push into Southeast Asia and list by 2028.
In a statement on Monday, Nubank said Tyme Group’s series D funding round totalled $250 million, with M&G Catalyst Fund subscribing for $50 million and existing shareholders providing a further $50 million.
Having completed its latest investment round, Singapore-based Tyme Group, backed by China’s Tencent, has also achieved unicorn status after securing the funds that give it a total valuation of $1.5 billion, it said in a separate statement. Unicorn status refers to a startup valued at more than $1 billion.
“This funding will propel our growth strategy, enabling us to realize our stated goal of being a top three retail bank in South Africa in the next three years,” said Karl Westvig, CEO of TymeBank in South Africa.
“Additionally, the enhanced credibility and market visibility that comes with the affiliation with Nubank, along with the large established networks of global investors, including GIC, Berkshire Hathaway (NYSE:BRKa), helps pave the group’s path towards a potential listing by 2028,” he added.
Coen Jonker, co-founder and CEO of Tyme Group, told Bloomberg in June that the company was looking to list in New York and most likely have a secondary listing on the Johannesburg Stock Exchange.
Tyme Group has operations in South Africa through TymeBank, which was launched in 2019 and has 10 million customers. It launched its second digital bank, GoTyme, in the Philippines in partnership with the Gokongwei Group in October 2022.
The group is now gearing up for expansion into Vietnam and Indonesia.
Tyme Group’s largest shareholder is African Rainbow Capital, controlled by African billionaire Patrice Motsepe.
(Reporitng by Andre Romani in Sao Paulo and Nqobile Dludla in Johannesburg; Editing by Brendan O’Boyle and Jamie Freed)