Target Information

Tyme Group is a multi-country digital banking organization that focuses on serving consumers and small to medium-sized enterprises (SMEs) in emerging markets. The company is headquartered in Singapore and has established a technology and product development hub in Vietnam. Tyme specializes in designing, building, and operating digital banks, demonstrating profound expertise in overcoming the unique challenges found in the banking landscape of emerging markets.

With a commitment to innovative technology, Tyme adopts a high-tech, high-touch approach to meet customer needs effectively. Following the successful launch of TymeBank in South Africa, the company introduced GoTyme in the Philippines in collaboration with the Gokongwei Group in October 2022. Currently, Tyme serves over 15 million customers across its operations.

Industry Overview

The fintech industry in Southeast Asia is experiencing rapid growth, driven by increasing smartphone penetration, internet connectivity, and a significant unbanked population. Countries like Vietnam and Indonesia present vast opportunities for digital banking solutions, as traditional banking infrastructure often struggles to meet the needs of these burgeoning markets.

In Vietnam, the digital banking landscape is evolving with substantial government support for financial inclusion initiatives. The country has set ambitious goals to promote digital payments and enhance access to financial services, making it an attractive market for innovative fintech solutions like those offered by Tyme Group.

Indonesia, the largest economy in Southeast Asia, also features a burgeoning fintech sector that is attracting investment. With a youthful population that embraces technology, digital banking services are expected to flourish as more consumers seek convenient and accessible financial options.

Overall, the fintech industry in these regions is characterized by strong investor interest and a conducive regulatory environment, setting the stage for significant growth opportunities for companies like Tyme Group.

Rationale Behind the Deal

The strategic partnership between 27four Investment Managers and Tyme Group is an excellent example of aligning interests in the rapidly evolving fintech landscape. By participating in Tyme Group’s recent Series D funding round, which raised US$250 million and achieved a valuation of US$1.5 billion, 27four underlines its commitment to supporting innovative and visionary companies within the financial technology sector.

The involvement of notable investors, including Nubank—a leading digital financial services platform—positions Tyme Group for accelerated growth in Southeast Asia. This funding will enable the company to expand its reach in Vietnam and Indonesia while reinforcing its established operations in South Africa and the Philippines.

Information about the Investor

27four Investment Managers is a South African asset management firm specializing in alternative investments, encompassing private equity, infrastructure, and venture capital. The company is committed to driving diversity and financial inclusion within the financial services sector while identifying distinctive investment opportunities for its clientele.

With a strong focus on supporting innovative companies, 27four aims to create lasting value through strategic investments. Its expertise in managing diversified portfolios allows the firm to navigate complex market environments effectively, making it a key player in the sustainable growth of fintech initiatives.

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The investment by 27four in Tyme Group marks a significant milestone in the fintech landscape, potentially representing a strong long-term opportunity. Tyme Group’s innovative approach to digital banking in emerging markets aligns with the growing demand for accessible financial services, particularly in Southeast Asia.

This partnership could lead to enhanced operational capabilities and accelerated market penetration for Tyme Group, especially considering the support from notable investors like Nubank and M&G’s Catalyst. Their involvement validates Tyme Group's potential for growth and innovation.

Moreover, as Tyme Group already boasts a substantial customer base in South Africa and the Philippines, the opportunity to expand its services in a rapidly growing market like Southeast Asia is promising. This strategic expansion aligns well with 27four's commitment to pursuing investments that not only offer financial returns but also advance social impact through enhanced financial inclusion.

Overall, this deal underscores 27four's ability to identify high-potential opportunities in the fintech space and showcases Tyme Group as a leader in addressing the banking needs of underserved markets.

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