Tyme, Southeast Asia’s newest unicorn, isn’t wasting time.
Born in South Africa, the Singapore-based digital bank found its growth and groove in Southeast Asia, and is the latest fintech startup to join the unicorn club — with a valuation of a cool $1.5 billion.
This is thanks to a $250 million funding round led by Nubank, the world’s most valuable digital bank. That cash injection is the largest in Southeast Asia this year and comes at a time when tech funding has plunged by 59% compared to 2023, according to Tracxn.
It wasn’t easy convincing investors to open their wallets, says Tyme’s co-founder and CEO, Coenraad Jonker.
“Pricing is still a challenge, but there’s capital out there,” Jonker tells MONIIFY. “High-quality assets will always attract money.”
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Across the Indian ocean
Tyme, which stands for “Take Your Money Everywhere”, started as a digital bank in South Africa in 2019.
Three years later, it set its sights across the Indian Ocean on emerging markets in Southeast Asia. This region has a large underbanked but tech savvy population — similar to South Africa’s.
In October 2022, GoTyme Bank, a joint venture with conglomerate Gokongwei Group, was launched in the Philippines. The company claims it has 15 million customers across both countries to date, and is the first digital bank to turn a profit in South Africa.
With more $$$ in its war chest, Tyme is now turning its focus to Indonesia and Vietnam. It is rolling out a product in 2025 offering loans to small businesses in both countries.
In Indonesia, the company is also investing “tens of millions of dollars” to acquire a small bank with a clean balance sheet before getting the nod from regulators for a new digital bank.
“We aim to finalize the acquisition in the next 12 to 18 months,” says Jonker.
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Go physical to grow digital
Being adaptable according to the local market conditions is Tyme’s secret sauce. In South Africa, Tyme built an affordable, mass-market brand.
In the Philippines, it switched gears to something more aspirational — attracting wealthier customers, without losing sight of its goal to be accessible for all.
And despite being a digital bank, Tyme leans on physical kiosks in retail stores to grow its presence and build trust with customers.
This is one reason why Tyme can add customers at a lower cost compared to its competitors, says Jonker. That’s the same approach they will bring to Indonesia.
But winning over millions of customers in Indonesia won’t be easy. Tyme will face stiff competition from major digital banking players like Blu by BCA Digital, Livin by Mandiri and other giants.
These fintech players are integrated into apps from their parent companies, making it a tough nut to crack for Tyme.
But Tyme has a few tricks up its sleeve to overcome these odds. It’s betting on partnerships, such as one with Indonesian fintech startup Finfra to roll out lending solutions for small businesses. It’s also planning to work with retailers to integrate its products into the customer shopping and loyalty experience.
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Despite the stiff competition, analysts say Indonesia’s digital banking market still has plenty of room to grow.
Josua Pardede, chief economist at Permata Bank, believes the key is tackling challenges like regulatory compliance, customer acquisition, and staying innovative.
“Differentiation is essential,” says Pardede. He sees embedded finance — banking seamlessly integrated into everyday apps and platforms — is important for new entrants.
While shares of traditional banking stocks like Bank BCA and Bank Permata have been steady this year, digital banks like Bank Jago and Bank Neo Commerce have struggled, dropping 19% and 52%, respectively.
Niko Margaronis, a research analyst at BRI Danareksa Sekuritas, says that the fates of these digital banking stocks are tied to the performance of their major shareholders like Grab or GoJek.
For example, Akulaku’s gradual divestment of shares in Bank Neo Commerce has had a ripple effect on the latter’s stock performance.
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Across (more) oceans
Tyme’s ultimate goal is to go public in New York by 2028. It plans to use the next three years to shore up its foundations.
In South Africa and the Philippines, Tyme is focused on becoming profitable and efficient, targeting return on equity of more than 30% and cost-to-income ratios of below 30%. In Indonesia and Vietnam, the aim is to have the right product-market fit.
“If we can achieve these two objectives, we’ll be in a strong position to prepare the business for listing,” Jonker says.
Edited by Victor Loh. If you have any tips, ideas or feedback, please get in touch: talk-to-us@moniify.com
