Nubank Invests $150 Million in Tyme Group

SAO PAULO/JOHANNESBURG (Reuters) – Brazilian digital bank Nubank announced a $150 million investment in Tyme Group, a digital bank with 15 million customers in South Africa and the Philippines. This funding will support Tyme Group's expansion into Southeast Asia and its goal of listing by 2028.

In a statement on Monday, Nubank revealed that Tyme Group's Series D funding round totaled $250 million, with M&G Catalyst Fund contributing $50 million and existing shareholders adding another $50 million.

With this recent investment, Singapore-based Tyme Group, backed by China's Tencent, has achieved unicorn status, achieving a total valuation of $1.5 billion. Unicorn status signifies a startup valued over $1 billion.

Karl Westvig, CEO of TymeBank in South Africa, stated, "This funding will propel our growth strategy, enabling us to realize our goal of being a top three retail bank in South Africa in the next three years." He added that Nubank's affiliation and the support from global investors, including GIC and Berkshire Hathaway, will aid the group's potential listing by 2028.

Coen Jonker, co-founder and CEO of Tyme Group, mentioned in June that the company aims to list in New York and likely have a secondary listing on the Johannesburg Stock Exchange.

Tyme Group operates in South Africa through TymeBank, launched in 2019, which has 10 million customers. The company launched its second digital bank, GoTyme, in the Philippines in October 2022 in partnership with the Gokongwei Group.

The group is preparing for expansion into Vietnam and Indonesia. Tyme Group's largest shareholder is African Rainbow Capital, controlled by African billionaire Patrice Motsepe.

(Reporting by Andre Romani in Sao Paulo and Nqobile Dludla in Johannesburg; Editing by Brendan O'Boyle and Jamie Freed)