The Elevator Ride That Birthed Tyme Group Its Unicorn Status
Tyme Group's recent USD $250 million funding round, led by Nubank, highlights its innovative approach to financial inclusion, leveraging strategic partnerships and AI to drive growth and expansion in emerging markets.
Get the hottest Fintech Singapore News once a month in your Inbox
Who would’ve guessed that a casual conversation in an elevator could’ve led to one of the most significant fintech investments of this year?
At a dinner in New York organised by Endeavor, Rachel Freeman, Chief Growth Officer of Tyme Group, recounted how two fintech teams found themselves sharing an elevator.
During this event, Tyme Group’s alignment with Nubank became even clearer, as Nubank’s founder shared research identifying the best countries for digital banking as all four of Tyme’s markets were on that list—namely South Africa, Philippines, Indonesia and Vietnam
The Funding That Gave Tyme Group Its Unicorn Status
In December 2024, Tyme Group’s valuation soared to USD $1.5 billion following its successful Series D funding round. The investment was spearheaded by Nubank, a global neobank powerhouse serving over 110 million customers across Brazil, Mexico, and Colombia.
Nubank contributed USD $150 million, with M&G Catalyst adding USD $50 million and Tyme’s existing shareholders rounding out the remaining USD $50 million. This milestone underscores Tyme’s strategic positioning as a digital banking leader in Africa and Southeast Asia.
Coenraad (Coen) Jonker, Co-Founder and CEO of Tyme Group, expressed his enthusiasm about the partnership with Nubank.
Coen Jonker
Specifically, he said, “Nubank transformed financial services in Brazil. We are excited by the value that Nubank’s thought partnership and advice can bring to Tyme, particularly in areas like data analytics, credit risk management, product development, and marketing.”
Building a Legacy of Financial Inclusion
From the outset, Tyme Group’s journey began with a bold mission.
It mainly revolves around democratising access to finance and giving people agency over their financial lives.
Recognising the systemic gaps in retail banking, especially for underserved communities, Tyme set out to redefine what a bank could offer.
As a result, TymeBank, launched in South Africa in 2019, became a beacon of this vision. It leveraged partnerships with retail giants like Boxer and Pick n Pay to integrate banking services into everyday consumer experiences.
As Tyme expanded its operations, its mission evolved to include serving affluent customers alongside the underserved.
“When we launched TymeBank in South Africa, it was very much focused on the mass market. But as we expanded to the Philippines, we created an aspirational brand that resonates with more affluent customers as well,” Coen explained.
Consequently, this dual focus has allowed Tyme Group to achieve broader market penetration while staying true to its roots in financial inclusion, leading to its unicorn status.
Innovating Through Synergy and Scalability
Tyme Group and Nubank bring distinct yet complementary strengths to their partnership. While Tyme focuses on transactions and savings as part of the liability side of the balance sheet, Nubank has built its business primarily around credit cards before expanding to other areas.
This difference in focus allows both companies to leverage their unique expertise, creating a dynamic knowledge exchange that benefits from their contrasting strengths.
For Tyme Group to achieve this unicorn status feat is no joke; it requires something special.
One of Tyme’s key differentiators lies in its hybrid approach of leveraging physical retail partnerships to drive customer acquisition and digital infrastructure for operational efficiency. Therefore, this model not only kept acquisition costs low but also ensured that banking services were accessible to a broader demographic.
“Digital banking is a scale game,” Coen said.
“You need fast and low-cost customer acquisition alongside a highly efficient cost base. Our partnership with retail stores plays a significant role in achieving these goals.”
Additionally, Tyme’s tech backbone, powered by a 500-strong team of developers and engineers in Vietnam, has been instrumental.
Thus, this tech hub ensures resilience and scalability, enabling the group to meet customer demands seamlessly, even during peak periods. Their technology has been described as the “goalkeeper of digital banking,” silently ensuring reliability while allowing front-end innovation to flourish.
Coen also highlighted the significance of their “phygital” model, a term that embodies Tyme Bank’s blend of physical and digital banking.
For example, their retail kiosks, deployed in collaboration with partners like the Gokongwei Group, enable customers to open accounts conveniently. This strategy has been essential in bridging accessibility gaps and expanding Tyme’s customer base.
A GoTyme ambassador assisting a customer at a kiosk in one of the 500+ locations in the Philippines. Source: GoTyme
Fostering Innovation Through Constructive Collaboration
Shared perspectives have formed the bedrock of Tyme’s partnership with Nubank, fostering a collaborative spirit that drives mutual growth. Interestingly, this partnership isn’t built solely on agreement.
For instance, Coen highlighted the importance of constructive disagreement in their relationship with Nubank, emphasising how it fosters innovation and growth. He recounted an early interaction with Christina, Nubank’s Co-Founder, where she immediately questioned Tyme’s Net Promoter Score (NPS).
While Tyme’s NPS is impressive and outpaces traditional banks, Christina’s critique reflected Nubank’s commitment to setting even higher standards.
Her sharp feedback served as a catalyst for introspection and improvement. Consequently, this encouraged Tyme to dig deeper into understanding and enhancing customer satisfaction. Rather than taking offence, the team embraced this challenge, seeing it as an opportunity to refine their strategies and strengthen their brand.
This ability to navigate diverse viewpoints has become a cornerstone of their collaboration. By combining Nubank’s meticulous approach to customer insights with Tyme’s dynamic execution, the partnership thrives on a shared commitment to excellence and continuous improvement.
Together, these differences complement each other, forming a foundation that not only drives growth but also ensures resilience in the ever-competitive digital banking landscape.
Cristina Junqueira, Co-Founder of Nubank
Learning Across Markets
Expanding across diverse markets like South Africa, the Philippines, Vietnam, and Indonesia has been both a challenge and an opportunity for Tyme.
While cultural nuances – such as the karaoke-filled onboarding ceremonies in the Philippines – add unique flavours to each market, fundamental similarities in customer behaviours create a shared foundation for innovation.
However, regulatory environments and financial infrastructure varied significantly across these regions, impacting the pace and scale of digital banking adoption.
In particular, in the Philippines, Tyme’s high Net Promoter Scores (NPS) reflect strong customer satisfaction, outpacing traditional banks. Therefore, this success underscores the importance of understanding local dynamics while leveraging universal best practices.
“So our focus will be very much in these four markets,” Coen explained. These refer to South Africa, the Philippines, Vietnam, and Indonesia.
In Indonesia and Vietnam, Tyme plans to lead with its SME product, a merchant cash advance service. This is so that they can establish trust and brand presence while working on retail banking licenses in the background.
Moreover, Coen emphasised their commitment to small and microbusinesses, stating, “The other was small and microbusiness. And we said, listen, these are really the customers that we need to look after, and I think that we are still very much due to that, that vision.”
Ultimately, Tyme’s ability to customise its offerings based on market-specific needs has proven to be a competitive advantage, paving the way for sustainable growth.
What’s Next for Tyme Group?
The Series D funding will primarily fuel Tyme’s expansion into Vietnam and Indonesia. By focusing on high-growth markets, Tyme aims to replicate its success in South Africa and the Philippines.
“At listing, we aim to showcase superior economic results in our first two markets and demonstrate product-market fit in Vietnam and Indonesia,” Coen said, revealing plans for a public listing within the next five years.
Beyond market expansion, Tyme is also considering potential acquisitions in regions like Indonesia to expedite its growth.
“If there’s a small, clean bank at the right price, we’re always open to exploring opportunities,” Coen hinted.
A DIY Ethos and a Glimpse Into the Future
Throughout its journey, Tyme Bank has fostered a do-it-yourself (DIY) ethos. From their early days to their recent funding round, they have demonstrated a remarkable ability to lead and innovate internally.
Even the Series D funding, a milestone often brokered by external consultants, was spearheaded in-house. It showcased the team’s resourcefulness and expertise.
In conclusion, Tyme Group’s journey from a chance elevator conversation to becoming a $1.5 billion fintech unicorn is nothing short of inspiring. It’s a story of bold ambitions, innovative partnerships, and a relentless focus on customer-centric banking.
With Nubank’s support, ambitious expansion plans, and a deep-rooted belief in transformative strategies, Tyme is poised to redefine digital banking in emerging markets.
As Coen and his team continue to break new ground, the global fintech community will undoubtedly be watching closely.
