Financial Services Deal Briefing: Nu Holdings Invests $150m in Tyme Group at $1.5bn Valuation

Deal Summary

Tyme Group (“Tyme”), a digital banking group operating in South Africa and Southeast Asia, raised $250 million in an oversubscribed Series D round, valuing the company at $1.5 billion. Headquartered in Singapore, Tyme operates hybrid digital banks tailored to emerging markets by leveraging partnerships and low-cost operations. The round was led by Nu Holdings Ltd. (“Nubank”), the largest digital bank in Latin America, who invested $150 million for a 10% stake. The remaining capital came from M&G Catalyst Fund ($50 million), part of UK-based impact investor M&G Investments, while existing shareholders like Tencent, Gokongwei Group, and British International Investments (BII) contributed $50 million. Tyme remains majority-owned by South African billionaire Patrice Motsepe’s African Rainbow Capital (ARC), which holds a 40% stake. This funding takes Tyme’s cumulative raise above $600 million in the past four years and will support the fintech’s expansion into Vietnam and Indonesia. Tyme serves 15 million customers across its South African and Philippine operations, operating as GoTyme Bank in the Philippines through a joint venture with the Gokongwei Group.?

Terms

• Fund Managers: Nu Holdings Ltd., M&G Investments, JG Summit Holdings, Inc. (Gokongwei Group), British International Investments (BII), Tencent Holdings Limited, Norrsken 22, BlueEarth Capital AG, Lavender Hill Capital Partners, The Rohatyn Group (formerly Ethos Private Equity), Africa Fig Tree Employee and Founders Trust (representing employees and founders of Tyme Group)
• Funds: Norrsken22 Africa Tech Growth Fund (Norrsken22), M&G Catalyst Investment Fund (M&G Investments), The Rohatyn Group (Ethos Private Equity Fund)
• Target: Tyme Group
• Financing Type: Equity?
• Investment Strategy: Growth Equity
• Financing Instrument: Ordinary shares
• VC Funding Round: Series C and beyond
• Equity Stake: Nu Holdings Ltd. (10%),? M&G Investments (3.33%), Others (3.33%)
• Amount: $250 million?

Deal Rationale

Nubank’s investment in Tyme aligns with its strategy to expand its geographical operations through inorganic growth in attractive emerging markets as it faces tougher competition in its core Latin American markets, where rivals such as Neon and C6 Bank are gaining traction. Demonstrating and delivering a clear path to steady, future growth returns is especially crucial for Nubank following its 2021 New York Stock Exchange listing...

• Market Opportunity:?Tyme operates at the intersection of two high-growth markets: digital banking in Africa and Southeast Asia...
• Risk/Return Analysis:?Nubank and Tyme share a focus on low-cost, tech-accessible models and scalable infrastructure, creating synergies as Tyme expands lending services...

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