TymeBank reaches unicorn status with $1.5bn valuation
Tyme Group, a digital lender backed by businessman Patrice Motsepe’s African Rainbow Capital, has becomes Africa’s newest unicorn following its successful series D capital raise of $250 million. The funding raise takes Tyme’s valuation to $1.5bn. It also ushers in new investors Nubank and M&G’s Catalyst, with ARC remaining the majority shareholder. To discuss what this means for the group, CNBC Africa is joined by Karl Westvig, CEO, TymeBank.
Tue, 17 Dec 2024 20:01:22 GMT
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AI Generated Summary
- Tyme Group achieves unicorn status in Africa with a $1.5 billion valuation after a successful $250 million Series D capital raise
- New investors M&G Catalyst and Nubank join forces with primary shareholder African Rainbow Capital to fuel Tyme's growth and expansion
- Tyme Bank focuses on accelerating growth in Asia, targeting profitability in the Philippines and strategic market penetration in Vietnam and Indonesia
Tyme Group, a digital lender embraced by Patrice Motsepe's African Rainbow Capital, has achieved unicorn status in Africa after a successful Series D capital raise of $250 million. This funding round has propelled Tyme's valuation to an impressive $1.5 billion, cementing its position in the financial market. The latest investment not only solidifies African Rainbow Capital as the primary shareholder with a 40% stake but also introduces new investors, including M&G Catalyst and Nubank. Karl Westvig, the CEO of TymeBank, shared insights on this significant milestone in a recent interview with CNBC Africa.
Reflecting on the momentous achievement, Westvig described the atmosphere within the organization as 'surreal.' An official announcement to the staff elicited a sense of pride and excitement, with employees grasping the significance of the milestone for the business. The infusion of $250 million marks a pivotal moment for Tyme, signifying a new chapter of growth and opportunity.
The restructuring of the group's shareholder landscape brings forth M&G Catalyst and Nubank as key contributors to Tyme's expansion. M&G Catalyst's $50 million investment aligns with a broader strategic partnership, leveraging their expertise as an asset manager based in the UK. On the other hand, Nubank's substantial investment of $150 million not only injects vital capital but also brings valuable intellectual property and advisory support to the table. This collaboration with the world's largest digital bank presents a wealth of opportunities for Tyme to enhance its offerings and market presence.
With the infusion of capital, Tyme Bank is gearing up for a phase of accelerated growth and expansion, with a focus on penetrating new markets in Asia. Westvig outlined the strategic allocation of funds, emphasizing the goal of driving the Philippines branch to profitability within the next 18 months. Additionally, Tyme aims to strengthen its presence in Vietnam and Indonesia by leading with innovative lending products and eventual establishment of fully-fledged banks in these regions.
Looking ahead, Westvig highlighted the potential listing of Tyme Bank, targeting a listing readiness by 2028. The company envisions a primary listing on the New York Stock Exchange accompanied by a secondary listing on the JSE, staying true to its South African roots while venturing into global markets. The prospect of a public listing reflects Tyme's ambitious growth trajectory and solidifies its position as a prominent player in the digital lending space.
Amidst a favorable economic outlook for 2025, characterized by stable political environments and potential investment opportunities, Tyme Bank embraces a positive sentiment for the year ahead. Westvig expressed optimism regarding the business prospects, citing a conducive rate cycle and enhanced consumer confidence as driving factors for growth. The CEO's confidence in the company's trajectory and sufficient capital for IPO readiness underscore Tyme's strategic vision and commitment to sustainable expansion.
As Tyme Bank embarks on its journey towards a public listing and further market advancements, the financial landscape awaits the unfolding chapters of this unicorn's story with anticipation and curiosity.