Tyme Group Becomes Africa’s Ninth Unicorn After Securing $250 Million Series D Funding

South Africa’s digital lender, Tyme Group, has cemented its position as one of Africa’s leading fintech companies after raising $250 million in a Series D funding round. The fresh investment, which values the company at $1.5 billion, officially makes Tyme Africa’s ninth unicorn—a privately held startup valued at over $1 billion. This milestone comes just two months after Nigerian fintech Moniepoint crossed the billion-dollar valuation mark, underscoring fintech’s sustained dominance in Africa’s tech ecosystem.

The funding round was led by Nu Holdings, the parent company of Latin America’s largest fintech, Nubank, which contributed $150 million in exchange for a 10% stake in Tyme. Other participants included M&G Catalyst Fund alongside Tyme’s existing investors. The successful raise signals a renewed appetite from global investors for African growth-stage companies following a period of funding slowdowns caused by global economic uncertainties.

Tyme’s valuation and status as a unicorn further cement fintech’s dominance in Africa’s startup landscape. Of the nine African unicorns, seven are fintech companies, reflecting the sector’s critical role in addressing financial inclusion and providing scalable solutions to underserved markets. The influx of global capital also highlights Africa’s unique position as a growth hub for innovative digital financial services.

Nubank’s significant participation in the Series D funding aligns with its long-term strategy to expand beyond Latin America into other emerging markets. Africa and South Asia, with their vast unbanked populations and burgeoning demand for digital financial solutions, represent a natural frontier for Nubank’s growth ambitions.

“We see Tyme as a valuable partner in helping us replicate our success outside of Latin America,” a Nubank spokesperson said, emphasizing the synergies between the two fintech giants. “Africa’s financial inclusion challenges offer enormous growth opportunities for digital lenders with the right business models.”

Launched in 2019, Tyme Group has built its success on a hybrid banking model that combines digital financial services with physical touchpoints, offering a range of services, including checking and savings accounts, debit cards, buy-now-pay-later credit, and small business financing. The model has proven particularly effective in emerging markets like South Africa, where financial access remains limited for significant portions of the population.

To date, Tyme Group serves 15 million customers across South Africa and the Philippines, demonstrating its ability to scale across diverse markets. The company claims to have disbursed over $600 million in financing to small businesses, positioning itself as a key driver of entrepreneurship and economic growth. Its South African subsidiary, TymeBank, has been instrumental in advancing financial inclusion by offering low-cost banking services to underserved communities.

In August 2024, TymeBank announced plans to expand operations into Indonesia by the end of the year. The move signals Tyme’s ambition to tap into Southeast Asia’s fast-growing digital banking market, which mirrors many of the challenges and opportunities seen in Africa.

The $250 million Series D raise brings Tyme Group’s total funding to approximately $600 million, a testament to investor confidence in its scalable business model and growth trajectory. African Rainbow Capital Investments Ltd. remains the lead shareholder, retaining a 40% stake in the business.

The success of Tyme Group reflects broader trends in Africa’s fintech sector, where companies are leveraging technology to bridge financial access gaps. For global investors like Nubank, Africa offers a fertile ground for innovation, driven by high mobile phone penetration, a growing middle class, and an urgent need for inclusive financial solutions.

As Tyme Group sets its sights on future growth, the company has also outlined plans for an initial public offering (IPO) by the end of 2028. An IPO would mark a significant milestone, not only for the company but for Africa’s broader tech ecosystem, which continues to attract attention from global capital markets.