South Africa’s digital lender Tyme Group has raised $250 million in a Sequence D spherical at a $1.5 billion valuation. With the valuation, Tyme turns into Africa’s ninth unicorn, two months after Nigeria’s Moniepoint hit the billion-dollar threshold. Tyme plans for an preliminary public providing by the tip of 2028.

The funding spherical was led by Nu Holdings, the father or mother firm of Nu Financial institution, Latin America’s most precious fintech, which invested $150 million for a ten% stake. M&G Catalyst Fund and current buyers additionally participated within the spherical. The most recent funding indicators an investor return to investing within the continent after a slowdown in funding.

As with different unicorns, the key contributors of this funding spherical have been world buyers, additional highlighting the shortage of progress capital on the continent. Tyme’s valuation continues the dominance of fintechs amongst Africa’s unicorns. Seven out of 9 African unicorns are fintechs. 

Nubank’s participation within the deal is a part of the financial institution’s plan to develop outdoors its Latin American markets. The financial institution needs to copy its successes in Latin America by tapping into the expansion potential of rising markets like Africa and South Asia.

Launched in 2019, Tyme Group operates via a hybrid mannequin of on-line and bodily banking, providing checking and financial savings accounts, debit playing cards, buy-now-pay-later credit score. With 15 million clients, the corporate claimed to have prolonged over $600 million in financing to small companies in South Africa and the Philippines. In August 2024, its South African subsidiary TymeBank introduced plans to launch in Indonesia by the tip of 2024.

The $250 million funding brings Tyme’s complete funding to about $600 million. African Rainbow Capital Investments Ltd. will stay Tyme’s lead shareholder with a 40% stake within the enterprise.