Nubank allocates $150 million to support digital banks in South Africa and the Philippines
After achieving significant growth in Mexico and Colombia, Nubank, Latin America’s largest digital bank, is taking bold steps to establish its presence in new continents.
This time, instead of organic expansion, Nubank has chosen to invest in other fintech companies.
The bank, founded by David Vélez, recently announced a $150 million investment in Tyme Group, a digital banking conglomerate operating in South Africa and the Philippines.
This strategic move is part of Tyme Group’s Series D funding round, which successfully raised a total of $250 million. The round also includes $50 million from the M&G Catalyst Fund and another $50 million from follow-on investors who had already backed the company.
Who is Tyme Group?
Headquartered in Singapore, Tyme Group is a fintech powerhouse specializing in digital financial services in emerging markets.
The company currently serves over 15 million customers across South Africa and the Philippines, with plans for further expansion. Its platform not only provides online banking solutions but also leverages partnerships with local retailers to enhance its reach and accessibility.
TymeBank was the group’s first venture, launching operations in South Africa. In 2022, the company entered the Philippine market under the name GoTyme Bank, collaborating with the Gokongwei Group, a local conglomerate. Additionally, Tyme Group has a development hub in Vietnam, where it aims to launch future operations.
Why Did Nubank Invest in Tyme Group?
A Shared Vision for Financial Inclusion
Nubank and Tyme Group share a mission to make financial services more accessible in emerging markets. Nubank’s investment underscores its confidence in Tyme Group’s ability to transform banking in Africa and Southeast Asia.
“Tyme Group is extremely well-positioned to become one of the leading digital banks in these regions. We are excited to share our expertise and scale this model to serve millions more customers,” said David Vélez, CEO of Nubank.
A Strategic Entry into New Markets
Rather than entering African and Southeast Asian markets directly, Nubank’s minority stake in Tyme Group allows it to gain exposure to these regions with lower operational risk.
Tyme’s existing infrastructure and partnerships provide a strong foundation for future growth, aligning well with Nubank’s objectives.
The Series D Round: What It Means for Tyme Group
Strengthening Financial Foundations
With the $250 million raised, Tyme Group is set to bolster its operations and accelerate its expansion plans. This funding round also marks a significant milestone in its journey toward becoming a global digital banking leader.
According to Coen Jonker, co-founder and president of Tyme, Nubank’s involvement adds strategic value beyond the financial boost. “Having Nubank as a shareholder will help strengthen our model, execution, and expansion plans,” he said.
Leveraging Nubank’s Expertise
As a pioneer in digital banking, Nubank brings valuable insights into scaling financial technology solutions. Tyme Group aims to leverage Nubank’s expertise in customer acquisition, operational efficiency, and technology-driven innovation to refine its offerings and expand its market reach.
A Look at Tyme Group’s Impact
Transforming Financial Services in South Africa
In South Africa, TymeBank has revolutionized banking by eliminating the complexities of traditional banking systems.
Customers can open accounts within minutes and access services through a user-friendly digital platform or through partnerships with well-known retailers. This model has made banking more inclusive, especially for underserved populations.
Expanding Financial Access in the Philippines
GoTyme Bank’s partnership with the Gokongwei Group has brought similar innovations to the Philippines.
By combining digital banking solutions with physical access points through retail partnerships, GoTyme has managed to capture a significant customer base.
The bank’s rapid growth highlights the demand for accessible and innovative banking solutions in Southeast Asia.
What’s Next for Tyme Group and Nubank?
Potential Expansion to Vietnam
Tyme Group’s development hub in Vietnam signals its intention to establish operations in yet another emerging market. If successful, this expansion could further solidify its position as a leading fintech in the region.
Collaborative Innovation
The partnership between Nubank and Tyme Group is expected to foster collaborative innovation. By sharing best practices, the two companies aim to develop cutting-edge solutions tailored to the needs of their diverse customer bases.
Conclusion
Nubank’s $150 million investment in Tyme Group represents a strategic move to extend its influence beyond Latin America. Through this partnership, both companies are set to make significant strides in advancing financial inclusion across emerging markets.
With Tyme Group’s proven track record in offering accessible banking solutions and Nubank’s expertise in digital innovation, this collaboration has the potential to reshape the digital banking landscape in Africa, Southeast Asia, and beyond.
By working together, they aim to address critical financial challenges, improve service accessibility, and create long-term value for millions of customers in emerging economies.
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