TymeBank, a South African digital bank, achieved two major milestones: profitability in December 2023 and a $1.5 billion valuation by the end of 2024. These accomplishments place TymeBank among Africa’s eight unicorns and highlight its rapid growth since launching in 2019. With over 15 million customers across South Africa and the Philippines, the bank’s hybrid model – combining digital banking with physical kiosks – has been key to its success. Strategic partnerships, cost-efficient operations, and customer-focused products, like zero-fee accounts and competitive savings rates, have driven its fast expansion. Backed by a $250 million Series D funding round led by Nubank, TymeBank plans to expand into Vietnam and Indonesia, aiming to become a top player in global retail banking.

How Word-of-Mouth Built South Africa’s First Black-Owned Unicorn Bank

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How TymeBank Became Profitable

TymeBank achieved profitability in under five years after its February 2019 launch, marking its first profitable month in December 2023. Before reaching this milestone, the bank accumulated $347 million (R6.6 billion) in losses, but by late 2023, its annual revenue run rate hit $95 million (R1.8 billion). This impressive turnaround was fueled by a series of strategic decisions and milestones achieved between 2018 and 2023.

Major Milestones from 2018 to 2023

TymeBank’s rapid growth was driven by strategic initiatives and partnerships, enabling it to consistently onboard about 150,000 new customers each month during its early years. By October 2023, it had become the fourth-largest bank in South Africa by customer numbers.

One pivotal moment came in December 2022 when TymeBank acquired Retail Capital, a fintech company focused on small business lending. This acquisition significantly boosted revenue, particularly through the Merchant Cash Advance product, which provided over $500 million in funding to more than 50,000 small businesses.

The bank also introduced innovative products tailored to the South African market. For example, the Grant Advance facility allowed social grant recipients to access their funds early without any fees. By January 2024, 78% of these users were caregivers, while the remaining users were recipients of old-age and disability grants. Other offerings included TymeHealth insurance and the MoreTyme Buy-Now-Pay-Later product, which diversified the bank’s revenue streams.

These milestones reflect TymeBank’s commitment to a customer-first strategy that fueled its growth and profitability.

Customer-Focused Growth Strategies

TymeBank’s growth was anchored in making banking accessible and affordable. The bank eliminated monthly fees entirely and kept transaction costs 30% to 50% lower than traditional South African banks. Customers could open a fully functional account in less than five minutes at any of the bank’s 1,000+ kiosks located in Pick n Pay, Boxer, and The Foschini Group stores.

Initially targeting underserved communities, TymeBank’s zero-fee accounts and quick setup process appealed not only to budget-conscious customers but also to higher-income individuals. The bank further attracted customers with competitive savings rates of up to 11% on fixed deposits.

“TymeBank’s unique proposition continues to digitally disrupt and transform the banking sector. And as the business evolves, we are seeing it gradually appeal to more affluent consumers who appreciate its unrelenting innovation, customer-centric transparency and accessibility.” – Dr. Patrice Motsepe, Founder and Chairman, African Rainbow Capital

The bank also leveraged strategic partnerships to expand its reach. Collaborations with organizations like the Zion Christian Church (ZCC) helped build a loyal and high-volume customer base. This ecosystem-driven approach, combined with a hybrid distribution model, enabled TymeBank to scale rapidly while maintaining operational efficiency.

The Hybrid Business Model

TymeBank has built its success on a “high tech-high touch” approach, blending digital banking with physical kiosks to create a seamless customer experience. Instead of traditional, costly branches, TymeBank introduced 1,000 kiosks located in Pick n Pay, Boxer, and TFG stores. This strategy not only slashes operational expenses but also makes banking more accessible.

The convenience factor is key. Rachel Freeman, Chief Growth Officer at Tyme Group, highlighted the simplicity of the process: “You can walk into a grocery store in South Africa and open a bank account with us in under three minutes”. Customers even receive a physical Visa debit card on the spot, addressing concerns about transitioning to digital banking.

Benefits of Combining Physical and Digital Banking

TymeBank’s hybrid model offers significant advantages, including 30% to 50% lower transaction costs compared to traditional South African banks. By operating entirely on cloud-based infrastructure, the bank avoids the hefty costs associated with legacy systems and physical branches. Its customer acquisition cost is just $4 per person, a fraction of the expense incurred by traditional banks that rely on branches and staff.

The bank’s 15,000 retail points make cash deposits and withdrawals easy, eliminating the need for customers to visit dedicated bank branches. This accessibility is especially meaningful for the 75% of TymeBank’s South African customers who come from low-income communities.

These cost efficiencies and customer-focused innovations have driven remarkable growth in deposits and customer numbers.

Deposit Growth and Customer Numbers

By the end of 2024, TymeBank had earned customer trust, with deposits reaching $385 million (R7 billion). The bank’s customer base surged to 10.7 million users, with approximately 150,000 new customers joining domestically each month. Its lending portfolio also saw notable growth, climbing from $104.68 million (R1.9 billion) to $126.72 million (R2.3 billion) during 2024.

This hybrid model’s success has encouraged Tyme Group to replicate it in other markets. The approach was introduced in the Philippines via GoTyme and is now expanding to Vietnam and Indonesia. By June 2025, Tyme Group had grown to serve 17.5 million retail customers, adding an impressive 450,000 new customers monthly across international markets.

Series D Funding Round and $1.5 Billion Valuation

Tyme Group has hit a major milestone in its journey, achieving unicorn status with a valuation of $1.5 billion. This achievement followed a successful $250 million Series D funding round in December 2024, which further solidified its rapid rise to profitability. With this, Tyme joined an exclusive group of just eight African unicorns, a feat made even more impressive by its landmark profitability achieved in December 2023.

Funding Sources and Investor Contributions

The Series D round brought together key investors, showcasing the strategic support behind Tyme’s growth. Leading the round was Nubank, Latin America’s largest digital bank, which invested $150 million for a 10% stake in Tyme Group. Nubank also brought its expertise in areas like data analytics, credit risk, product development, and marketing to the table. M&G Catalyst Fund added $50 million, while existing shareholders – including African Rainbow Capital and Apis Growth Fund II – contributed another $50 million. Even after the funding, African Rainbow Capital maintained its position as the majority shareholder with a 40% stake.

“We think that Tyme Group is extremely well-positioned to be one of the digital bank leaders in Africa and Southeast Asia. We are excited to work with Tyme to share many of our learnings of scaling this model to hundreds of millions of customers.”
– David Vélez, Founder and CEO, Nubank

This strategic backing has been instrumental in driving Tyme’s ambitious plans for expansion.

How the Funding Fueled Growth

The $250 million raised in this round has been a game-changer for Tyme, enabling it to focus on three major growth initiatives:

• Driving GoTyme, its Philippine operation, to profitability within 18 months.
• Expanding into Vietnam and Indonesia with digital banking services, leveraging its existing 300-person technology hub in Vietnam.
• Strengthening its position in South Africa, with the goal of becoming one of the country’s top three retail banks within three years.

“This funding will propel our growth strategy, enabling us to realize our stated goal of being a top three retail bank in South Africa in the next three years.”
– Karl Westvig, CEO, TymeBank

The funding has also set the stage for a potential IPO by 2028, with plans for a primary listing on the New York Stock Exchange and a secondary listing on the Johannesburg Stock Exchange. As of the Series D round, Tyme Group was serving over 15 million customers – 10 million in South Africa and 5 million in the Philippines – while adding approximately 150,000 new users each month.

Expansion into Africa and Asia

Building on its success at home and its innovative hybrid banking model, TymeGroup began looking beyond South Africa to expand its reach. In 2021, the company established its global headquarters in Singapore. This move centralized its strategy and tech operations while also attracting major investors like Tencent, British International Investment, and Nubank. The choice of Singapore also added regulatory credibility to the group’s operations. Rachel Freeman, Executive Director and Chief Growth Officer at Tyme Global, highlighted the importance of this decision:

“Being in Singapore provides comfort in terms of good governance and solid infrastructure. It demonstrates that we operate within a well-managed city-state with sound regulations… This indirect validation strengthens our standing globally.”

While Singapore serves as the strategic hub, Tyme operates a tech hub in Ho Chi Minh City, where over 300 engineers work to keep costs low while driving innovation.

GoTyme in the Philippines

Tyme’s first major leap outside of South Africa came in October 2022 with the launch of GoTyme Bank in the Philippines. This was a joint venture with the Gokongwei Group, leveraging its extensive retail network to bring Tyme’s hybrid banking model to high-traffic locations. By August 2024, GoTyme had already attracted 3 million users and amassed PHP 17.3 billion (around $300 million) in deposits. By the end of 2024, customer numbers had grown to 5 million, and the bank had reached profitability – a clear sign that the hybrid model works across different markets and customer bases. Notably, about 45% of GoTyme’s customers come from low-income groups, showcasing the bank’s focus on financial inclusion in Southeast Asia.

Operations in Vietnam and Indonesia

Tyme’s next steps in its global journey focused on Vietnam and Indonesia, two markets with significant potential. In Vietnam, Tyme zeroed in on the country’s massive SME sector, offering merchant cash advance products to a largely underserved market. While SMEs make up 97% of businesses in Vietnam, only 25% have access to affordable banking options. The Ho Chi Minh City tech hub plays a key role in supporting these efforts, with plans to expand into broader consumer services.

In Indonesia, Tyme partnered with Finfra to provide lending solutions tailored to MSMEs, further diversifying its offerings. By June 2025, Tyme’s efforts across all markets had resulted in 17.5 million retail customers, with 450,000 new customers joining each month.

Technology and Product Development

As part of its expansion strategy, TymeBank has heavily invested in technology to enhance efficiency and improve customer satisfaction. These investments have been pivotal in reducing costs while delivering better services. For instance, TymeBank utilized AI to automate social media interactions, significantly cutting response times without increasing staff. Additionally, AI was employed to enhance developer productivity and scale infrastructure more effectively.

A strategic partnership with Nubank brought advanced data analytics into the mix, further strengthening TymeBank’s operations. Coen Jonker, Founder and CEO of Tyme Group, highlighted the importance of this collaboration:

“We are excited by the value that Nubank’s thought partnership and advice can bring to Tyme particularly in areas such as data analytics, credit risk management, product development and marketing – levers we believe are key to achieving leadership in our markets”.

This partnership played a key role in refining TymeBank’s credit risk assessments and tailoring customer experiences.

AI and Data Analytics Applications

By the end of 2023, TymeBank had provided financing to over 50,000 SMEs through merchant cash advances, contributing to a 30% year-over-year increase in its lending portfolio. The bank’s customer acquisition cost stood at approximately $4.50 – remarkably lower than the $20–$30 average for other digital banks and far below the $350–$380 range typical for traditional banks. AI-powered analytics were instrumental in managing this growth, enabling TymeBank to scale operations efficiently while handling increased customer activity. African Rainbow Capital noted:

“TymeBank is making rapid progress toward sustainable monthly profitability… leveraging technology to drive growth and operational efficiency”.

These technological advancements laid the groundwork for the introduction of new products in 2025.

New Products and IPO Plans

In 2025, TymeBank expanded its offerings by launching vehicle financing, marking its entry into higher-margin secured lending. This move capitalized on its extensive customer base and drove net advances to $126.72 million by the end of December 2024.

CEO Karl Westvig shared the bank’s ambitious plans for global expansion:

“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”.

He further emphasized:

“this achievement serves to fuel our team’s ambition to be listing-ready in the next four to five years”.

With a valuation of $1.5 billion achieved by late 2024, TymeBank is aiming for a dual listing by 2028, underscoring its goal of becoming a global financial leader.

Lessons for Fintech Entrepreneurs and Investors

TymeBank’s journey offers valuable takeaways for fintech entrepreneurs and investors. Its achievements highlight the importance of strategic choices in areas like distribution, pricing, and technology.

A hybrid model builds trust faster than digital-only approaches. Combining digital access with physical kiosks has been a game-changer for TymeBank, allowing it to establish trust quickly. As Rachel Freeman, Chief Growth Officer at Tyme Group, put it:

“You can walk into a grocery store in South Africa and open a bank account with us in under three minutes”.

For fintechs aiming to connect with underbanked communities, adding physical touchpoints can significantly enhance credibility.

Efficient customer acquisition is key to scaling. Keeping customer acquisition costs low – around $4 in TymeBank’s case – was achieved through strategic partnerships with major retailers like Pick n Pay, Boxer, and The Foschini Group. These partnerships allowed the bank to tap into existing customer traffic rather than relying on costly marketing campaigns. Lucia Malapane, Senior Marketing Manager at TymeBank, highlighted:

“We leverage AI and data analytics to make sure that we provide the right communications to customers we believe will benefit from a particular product”.

Transparent pricing encourages adoption. By offering no monthly fees and much lower transaction costs, TymeBank attracted customers rapidly. This pricing strategy helped the bank secure the second spot in South Africa for “value for money”. CEO Karl Westvig explained:

“We make digital banking accessible and affordable to all South Africans across the economic spectrum – that’s what makes the TymeBank brand so appealing to the average South African”.

Owning critical technology ensures agility. TymeBank’s ability to scale and adapt stems from owning key technologies, such as an in-house CRM and AI-driven credit risk tools. This enabled them to provide funding to over 80,000 small and medium-sized enterprises while maintaining responsible lending practices.

These lessons underscore the strategies that have powered TymeBank’s success and offer a roadmap for others in the fintech space.

FAQs

How did TymeBank achieve profitability and reach a $1.5 billion valuation so quickly?

TymeBank reached profitability in December 2023, marking a major milestone less than five years after its February 2019 launch. The bank’s success can be attributed to its streamlined, hybrid distribution model, which merges a fully digital banking platform with physical kiosks located in major retail stores. These kiosks enable customers to open an account in under three minutes, helping the bank attract around 150,000 new users every month. This approach keeps customer acquisition costs much lower than those of traditional banks. By focusing on underserved, low-income South Africans and offering affordable yet high-quality financial products, TymeBank has achieved strong customer engagement while maintaining a low-cost structure. As a result, its annual revenue has surpassed $95 million.

In late 2024, TymeBank secured $250 million in Series D funding, led by Brazil’s Nubank. This infusion of capital, paired with Nubank’s expertise, allowed TymeBank to scale its kiosk network, enter the Philippine market, and improve its credit-risk management and product offerings. These strategic moves reinforced TymeBank’s status as Africa’s first profitable digital bank and helped it achieve a unicorn valuation of $1.5 billion.

What factors contributed to TymeBank’s $1.5 billion valuation in 2025?

TymeBank’s valuation hitting an impressive $1.5 billion in 2025 can be traced back to a combination of strategic moves and key accomplishments. One standout factor was their successful $250 million Series D funding round, spearheaded by Nubank, with additional backing from M&G Catalyst and African Rainbow Capital. Another pivotal moment came in December 2023, when the bank reached profitability – an achievement that came in under five years since its inception.

What fueled this growth? For starters, TymeBank’s customer base skyrocketed to over 10 million users, thanks to its commitment to delivering low-cost, tech-driven digital banking services. On top of that, the bank leaned heavily into AI and data analytics, enabling it to craft innovative financial tools and scale operations efficiently. These efforts have firmly established TymeBank as a leading force in the fintech world.

What are the benefits of TymeBank’s hybrid banking model for customers?

TymeBank offers a hybrid banking model that merges the ease of a fully digital platform with the accessibility of physical kiosks in popular retail stores like PnP, Boxer, and TFG. With this setup, customers can open a bank account in less than three minutes – no need to step into a traditional branch. The process is quick and secure, thanks to biometric verification using facial and fingerprint recognition, paired with a one-time password (OTP) step. Once onboarded, users can manage their accounts anytime through the bank’s digital app.

This model also keeps banking affordable. There are no fees for opening an account or receiving a Visa debit card. By operating through kiosks instead of maintaining costly branches, TymeBank significantly reduces overhead, allowing it to offer low-cost services. This is particularly helpful for low-income customers, who make up a large portion of the bank’s clientele. By situating kiosks in familiar retail spaces, TymeBank makes banking more accessible while ensuring it remains simple, secure, and wallet-friendly.

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