Nubank Announces Investment in Tyme Group, a Digital Bank With Operations in South Africa and the Philippines

Rhea-AI Summary

Nubank has announced a US$150 million investment in Tyme Group, leading their series D funding round totaling US$250 million. The additional funding includes US$50 million from M&G Catalyst Fund and US$50 million from existing shareholders. Tyme Group, founded in 2019, is a digital bank operating in South Africa and the Philippines with 15 million customers.

Tyme Group operates using a hybrid model combining digital platforms with physical experiences through retail partnerships, digital kiosks, and bank ambassadors. The company maintains headquarters in Singapore and a development hub in Vietnam, where it plans future operations. Through this investment, Nubank becomes a minority shareholder in Tyme Group.

Positive

• Secured significant funding of US$250 million in Series D round
• Strong customer base of 15 million users across markets
• Strategic partnership with major fintech player Nubank
• Established presence in multiple emerging markets

Negative

• None.

Insights

Financial Analyst

Nubank's $150M investment in Tyme Group marks a strategic expansion into emerging markets, particularly Africa and Southeast Asia. This move diversifies Nubank's geographical exposure beyond Latin America and positions it to tap into high-growth digital banking markets. The deal structure, valuing Tyme at a significant premium with $250M total funding, demonstrates strong investor confidence. Tyme's hybrid model combining digital platforms with physical touchpoints through retail partnerships presents an innovative approach to reaching underbanked populations. With 15 million customers already, Tyme's growth trajectory and market penetration strategy align well with Nubank's own successful expansion playbook. This investment could provide significant upside potential through knowledge sharing and potential technology synergies.

Market Research Analyst

This strategic investment targets two important emerging market regions with significant untapped potential. South Africa and the Philippines represent markets with large unbanked populations and increasing smartphone penetration - key drivers for digital banking growth. Tyme's unique approach of combining digital services with physical presence through retail partnerships addresses a critical trust barrier in emerging markets. The presence of institutional investor M&G Catalyst Fund validates the business model's credibility. Nubank's expertise in scaling digital banking services could accelerate Tyme's growth in these markets. The expansion into Vietnam signals further growth potential in Southeast Asia's dynamic fintech landscape.

Nubank leads series D funding round with US$ 150M investment; Tyme operates in South Africa and the Philippines with 15 million customers

SÃO PAULO--(BUSINESS WIRE)-- Nubank, one of the world's largest digital financial services platforms, announces today an investment of US$150 million in Tyme Group as the lead of their series D funding round. The total investment round amounted to US$250 million, with M&G Catalyst Fund subscribing for US$50 million and existing shareholders with further US$50 million. Tyme Group is one of the fastest-growing digital banks globally, with 15 million customers and operations in South Africa and the Philippines. With this investment, Nubank becomes a minority shareholder in Tyme Group.

"Since the beginning of Nubank, we have believed that the future of financial services globally is of digitally-native companies. We have met dozens of teams across different geographies, and we think that Tyme Group is extremely well-positioned to be one of the digital bank leaders in Africa and South East Asia. We are excited to work with Tyme to share many of our learnings of scaling this model to hundreds of millions of customers," says David Vélez, founder and CEO of Nubank.

Founded in 2019 in South Africa, Tyme Group operates under a hybrid model that combines a customer-centric digital platform with physical experiences, delivered in partnership with nationwide retailers through digital kiosks and bank ambassadors. With the objective of offering an affordable banking solution and maintaining a lower cost structure than traditional banks, Tyme Group has reached more than 15 million customers. The bank specializes in emerging markets populations and, besides South Africa and the Philippines, it has a Global Headquarters in Singapore and a development hub in Vietnam, where it plans to open its next operation.

"Nubank revolutionized financial services and having them as a shareholder will help build rapport to our model, execution and expansion plans, both financially and through business counsel. We are focused on improving the financial lives of millions of people in our region, and we are energized by this round of investments to keep pushing forward," said Coen Jonker, Chairman and co-Founder of Tyme.

About Nu

Nu is one of the world’s largest digital financial services platforms, serving 110 million customers across Brazil, Mexico, and Colombia. The company has been leading an industry transformation by leveraging data and proprietary technology to develop innovative products and services. Guided by its mission to fight complexity and empower people, Nu caters to customers’ complete financial journey, promoting financial access and advancement with responsible lending and transparency. The company is powered by an efficient and scalable business model that combines low cost to serve with growing returns. Nu’s impact has been recognized in multiple awards, including Time 100 Companies, Fast Company’s Most Innovative Companies, and Forbes World’s Best Banks.

For more information, please visit https://international.nubank.com.br/about/.

About Tyme

Tyme Group is a multi-country digital banking group, focused on serving consumers and SMEs in emerging markets. Headquartered in Singapore, with a technology and product development hub in Vietnam, Tyme designs, builds, and operates digital banks for the mass market, providing access to affordable, quality financial services for consumers and small businesses across the economic spectrum. Tyme recognises the unique challenges of banking in emerging markets, and leverages technology innovatively, through a high tech-high touch approach, to meet the needs of its emerging mass market customers. Tyme launched TymeBank in South Africa in 2019, and launched its second digital bank, GoTyme Bank, in the Philippines, in partnership with the Gokongwei Group, in October 2022.

Across the Group, Tyme now serves more than 15 million customers.

View source version on businesswire.com: https://www.businesswire.com/news/home/20241216641095/en/

press@nubank.com.br - Simone Iwasso, Head of Global Communications

Rachel.Freeman@tyme.com – Rachel Freeman, Communications

Source: Nubank

FAQ

How much did Nubank invest in Tyme Group's Series D funding round?

Nubank invested US$150 million as the lead investor in Tyme Group's Series D funding round, which totaled US$250 million.

What is Tyme Group's current customer base in 2023?

Tyme Group currently serves 15 million customers across its operations in South Africa and the Philippines.

What markets does Tyme Group currently operate in?

Tyme Group currently operates in South Africa and the Philippines, with headquarters in Singapore and a development hub in Vietnam.

What is Tyme Group's business model?

Tyme Group operates using a hybrid model that combines digital platforms with physical experiences, delivered through partnerships with retailers via digital kiosks and bank ambassadors.

What is Nubank's ownership stake in Tyme Group after the investment?

Following the US$150 million investment, Nubank became a minority shareholder in Tyme Group.