South Africa’s TymeBank and Nigeria’s Moniepoint recently secured funding rounds valuing each at over $1 billion, marking them as unicorns in Africa’s expanding tech ecosystem.
Key Highlights
Unicorn Status:
- Both companies’ new valuations reflect their innovation in adapting fintech models to Africa’s unique challenges, with nearly half of the continent’s population remaining unbanked.
Simplifying Banking:
- TymeBank: Began with low-cost banking for retail customers and expanded into small business banking in South Africa, offering working capital solutions.
- Moniepoint: Focused on supporting Nigerian small businesses with accounts, payments, loans, and expense tools, now expanding into retail banking.
Hybrid Banking Approach:
Both companies blend digital banking with physical touchpoints to meet the specific needs of African markets.
- Lexi Novitske, general partner at Norrsken22 (an investor in TymeBank), notes:
“In Africa, it’s a catch-22: you can’t have one thing without the other. Many tech companies must build customer acquisition and engagement through highly analog or physical efforts.”
Regional Impact:
- These fintechs are driving financial inclusion in Africa’s largest economies, leveraging innovative, regionally tailored solutions to serve underbanked populations effectively.
