GoTyme Bank rides ‘unicorn’ status of parent firm
GoTyme Bank Philippines will get an equity infusion to firm up its expansion plans here and abroad after Tyme Group, a major shareholder, had become a unicorn with additional an $250 million in fresh funding.
Nubank, a Brazilian digital bank with market capitalization of over $57 billion, led the latest funding round with a $150-million investment in Tyme Group.
“Nubank revolutionized financial services, and having them as a shareholder will help accelerate the development of our strategic capabilities, execution and expansion plans in Southeast Asia, through their investment of financial resources and counsel,” Coen Jonker, founder and CEO of the Singaporean startup, said in a statement on Monday.
M&G’s Catalyst Fund injected $50 million while existing investors such as the Gokongwei Group, Tencent, British International Investment, Norrsken 22, Blue Earth, Lavender Hill, Ethos Fund and Africa Fig Tree put in $50 million.
Following this fundraising, Tyme Group is now valued at $1.5 billion.
GoTyme Bank CEO Nathaniel Clarke, in an interview with the Inquirer, said the fresh funds would fuel their expansion plans in Indonesia and Vietnam where they intend to set up shop in three to four years.
He said the Gokongwei-backed digital bank was already in talks with potential partnerships in both countries.
Clarke noted that having a bigger footprint across Southeast Asia and South Africa, was a crucial move en route to their planned public listing in New York by 2028.
GoTyme Bank co-CEO Albert Tinio, meanwhile, said they were looking forward to leveraging Nubank’s expertise in lending, which the bank previously identified as a growth segment.
The digital bank wants to focus on lending next year by providing a buy-now-pay-later scheme, which has been gaining traction among online shoppers.
GoTyme, at present, is already providing credit services to micro, small and medium enterprises through its partnership with PayMongo and Foodpanda.
The neobank currently has a base of 5 million customers, which is expected to reach 5.3 million by the end of the year. Total deposits, meanwhile, stood at P24 billion.
Next year, GoTyme Bank targets to increase its customer base to 9 million.
