The elevator ride that created Time Group’s unicorn status

Who would have thought that a casual conversation in an elevator would lead to one of the most important fintech investments of the year?

At a dinner hosted by Endeavor in New York, Rachel Freeman, Time Group’s chief growth officer, explained how the two fintech teams ended up sharing an elevator.

During the event, the collaboration between Tyme Group and Nubank became even clearer, with Nubank’s founders stating that all four of Tyme’s markets (South Africa, Philippines, Indonesia and Vietnam) are included in the list, making them ideal for digital banking. We shared our findings identifying the country.

Ultimately, that brief encounter sparked a connection that culminated in Time Group achieving unicorn status. US$250 million Series D funding round led by Nubank.

The funding that gave Tyme Group unicorn status

In December 2024, Tyme Group’s valuation skyrocketed to USD 1.5 billion following a successful Series D funding round. The investment was led by Nubank, a leading global neobank serving more than 110 million customers in Brazil, Mexico, and Colombia.

Nubank invested $150 million, M&G Catalyst added $50 million, and Tyme’s existing shareholders fully funded the remaining $50 million. This milestone underscores Time’s strategic position as a leader in digital banking in Africa and Southeast Asia.

Coenraad (Coen) Jonker, co-founder and CEO of Tyme Group, expressed enthusiasm about the partnership with Nubank.

Specifically, “Nubank has transformed financial services in Brazil. We are excited about the value that Nubank’s intellectual partnership and advice will bring to Tyme, particularly in areas such as data analytics, credit risk management, product development, and marketing.” I’m excited about it.

Building a tradition of financial inclusion

From the beginning, Tyme Group’s journey began with a bold mission.

It primarily revolves around democratizing access to finance and giving people agency over their economic lives.

Time recognized a systemic gap in retail banking, particularly in underserved communities, and set out to redefine what banks can offer.

As a result, TymeBank, founded in South Africa in 2019, pioneered this vision. We leveraged partnerships with retail giants like Boxer and Pick n Pay to integrate banking services into the everyday consumer experience.

Furthermore, as of the end of 2024, TymeBank boasts over 10 million customerswith customer deposits of USD 400 million and loans to small and medium-sized enterprises of USD 600 million.

Similarly, this impressive growth was matched by GoTyme Bank in the Philippines.

Joint venture project with Gokongwei Group We were able to reach 5 million customers in just 2 years It is scheduled for release in 2022.

As Time Inc.’s business expanded, its mission evolved to include serving underserved as well as wealthy customers.

“When we launched Timebank in South Africa, we were focused on the mass market. But as we expanded into the Philippines, we created an aspirational brand that resonated with more affluent customers. ,” Cohen explained.

As a result, this dual focus has enabled Time Group to achieve broader market penetration while staying true to its roots in financial inclusion, leading to unicorn status.

Innovation through synergy and scalability

Tyme Group and Nubank bring unique yet complementary strengths to the partnership. While Tyme focuses on trading and savings as part of the liability side of its balance sheet, Nubank has built its business primarily around credit cards before expanding into other areas.

This difference in focus allows both companies to leverage their unique expertise and create a dynamic knowledge exchange that benefits from their contrasting strengths.

Tyme Group’s achievement of this unicorn status is no joke. You need something special.

One of Tyme’s key differentiators is its hybrid approach, which leverages physical retail partnerships to drive digital infrastructure for customer acquisition and operational efficiency. Therefore, this model not only kept acquisition costs low but also made banking services accessible to a wider range of people.

“Digital banking is a scale game,” Cohen said.

“We need fast and low-cost customer acquisition, along with a highly efficient cost base. Retail partnerships play a key role in achieving these goals.”

Additionally, Tyme’s technology backbone, supported by a 500-strong team of developers and engineers in Vietnam, also helped.

This technology hub will therefore ensure resilience and scalability, allowing the Group to seamlessly respond to customer demand even during peak periods. Their technology has been described as the “goalkeeper of digital banking,” quietly ensuring reliability while enabling front-end innovation to flourish.

Mr. Cohen also emphasized the importance of TimeBank’s “physical” model, a term that embodies the fusion of physical and digital banking.

For example, retail kiosks, introduced in collaboration with partners such as Gokongwei Group, make it easy for customers to open an account. This strategy was essential to closing the accessibility gap and expanding Tyme’s customer base.

Fostering innovation through constructive collaboration

A shared perspective formed the basis of Tyme and Nubank’s partnership, fostering a collaborative spirit that fostered mutual growth. Interestingly, this partnership is not built solely on agreement.

For example, Mr. Cohen emphasized the importance of constructive disagreement in the NuBank relationship and how it fosters innovation and growth. He recounted an early interaction with Nubank co-founder Christina, in which she immediately questioned Tyme’s Net Promoter Score (NPS).

While Tyme’s NPS is excellent and outperforms traditional banks, Christina’s critique reflects Nubank’s commitment to setting even higher standards.

Her incisive feedback sparked self-reflection and improvement. As a result, this led Time Inc. to dig deeper into understanding and improving customer satisfaction. Rather than attack, the team embraced the challenge, viewing it as an opportunity to hone their strategy and strengthen their brand.

This ability to navigate diverse perspectives is fundamental to their collaboration. Combining Nubank’s meticulous approach to customer insights with Tyme’s dynamic execution, this partnership thrives on a shared commitment to excellence and continuous improvement.

These differences complement each other and form the basis for not only driving growth but also ensuring resilience in an increasingly competitive digital banking environment.

Learn across markets

Expanding into markets as diverse as South Africa, the Philippines, Vietnam and Indonesia is both a challenge and an opportunity for Tyme.

While cultural nuances, such as the Philippines’ karaoke-filled induction ceremonies, add a unique flavor to each market, fundamental similarities in customer behavior create a common ground for innovation.

However, the regulatory environment and financial infrastructure vary widely across these regions, impacting the pace and scale of digital banking adoption.

Especially in the Philippines, Tyme’s high Net Promoter Score (NPS) reflects high customer satisfaction and outperforms traditional banks. This success therefore highlights the importance of understanding local dynamics while leveraging universal best practices.

“So our focus will be on those four markets,” Cohen explained. These refer to South Africa, the Philippines, Vietnam, and Indonesia.

Time Inc. plans to take the lead in Indonesia and Vietnam with cash advance payment services for merchants, a product aimed at small and medium-sized businesses. This is so that you can build credibility and brand presence while working on your retail banking license in the background.

Furthermore, Mr. Cohen said, “The other one was small and micro businesses,” emphasizing the company’s efforts toward small and medium-sized enterprises. And we said, listen, these are the customers that we really need to take care of, and I think we’re still very much a part of that vision. ”

Ultimately, Tyme’s ability to customize products based on market-specific needs proved to be a competitive advantage, paving the way for sustainable growth.

What’s next for Timegroup?

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.

“When we go public, we aim to demonstrate strong economic performance in our first two markets and demonstrate product-market fit in Vietnam and Indonesia,” Cohen said, revealing plans to go public within the next five years. I made it.

In addition to market expansion, Time Inc. is also considering potential acquisitions in regions such as Indonesia to fuel growth.

“If there’s a small, clean bank at the right price, we’re always open to exploring opportunities,” Cohen hinted.

DIY spirit and a glimpse of the future

Throughout its history, Tyme Bank has fostered a do-it-yourself (DIY) spirit. From our inception to our recent funding round, they have demonstrated an incredible ability to lead and innovate within the company.

Even the Series D funding, a milestone often brokered by external consultants, was led in-house. It showed the team’s resourcefulness and expertise.

In conclusion, Time Group’s journey from a chance elevator conversation to a $1.5 billion fintech unicorn is nothing short of inspiring. This is a story of bold ambition, innovative partnerships and a relentless focus on customer-centric banking.

With Nubank’s support, ambitious expansion plans and deep-rooted belief in innovative strategies, Tyme is poised to redefine digital banking in emerging markets.

The global fintech community will no doubt be watching closely as Cohen and his team continue to break new ground.