TymeBank, an exclusively digital bank based in South Africa, that disproportionately serves low-income rural customers, has secured $9.5 million (ZAR 169 million) in funding as it set to expand its footprint into Southeast Asia.
The funding round was led by African Rainbow Capital (ARC), a broad-based black-controlled investment company, strengthening its position as a formidable player in the global fintech landscape. ARC, led by billionaire Patrice Motsepe, made this investment at a pivotal moment for TymeBank, which reached profitability in December 2023.
In a statement, ARC highlighted the bank’s strong growth trajectory, with activity rates and deposit growth surpassing expectations. As the fastest-growing digital bank in South Africa, TymeBank’s success has positioned it as a standout player not only in Africa but also in emerging international markets.
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Tyme Global, the bank’s Singapore-based holding company, is spearheading the international expansion. In the Philippines, TymeBank’s venture, GoTyme, has already gained significant traction, acquiring 3.58 million customers since its launch in November 2022. GoTyme is on track to reach profitability by late 2025 and serves as a springboard for TymeBank’s planned entry into Indonesia by the end of 2024.
The bank’s international expansion is bolstered by a partnership with the influential Gokongwei family in the Philippines, providing key market entry points in industries such as telecommunications and food manufacturing.
Despite its global ambitions, TymeBank remains focused on its dominance in South Africa, where it continues to support over 50,000 small and medium-sized enterprises (SMEs) through its lending products. Over the year to the end of June, TymeBank deposits have increased by 59% to R6.5bn and merchant credit advances have risen steadily to about R1.8bn. Also, it has leveraged its extensive retail partnerships with Pick n Pay, Boxer, and The Foschini Group (TFG) to create the largest cash-in and cash-out network in the country.
Arguably the fastest-growing bank in South Africa, it expects to hit the 10 million customer mark in the next quarter, having already reached 9.5 million customers by the end of June. Over the year to the end of June, TymeBank deposits increased by 59% to R6.5-billion and merchant credit advances rose steadily to about R1.8-billion.
Management noted that the operational leverage provided by technology was clear net operating income tripled year-on-year while costs increased by 10%. In December 2023, the bank reached break-even and sustained profitability is expected in the coming months.
Looking ahead, TymeBank is eyeing a $150 million Series D funding round as it moves closer to achieving unicorn status. The CEO Coenraad Jonker has also revealed plans for a potential dual public listing on the New York Stock Exchange (NYSE) and Johannesburg Stock Exchange (JSE) by 2028, aiming to secure additional capital and global recognition.
For now, the bank’s focus remains on scaling operations in Southeast Asia, where the demand for digital banking is rapidly increasing, driven by the shift toward cashless transactions and a broader push for financial inclusion. Notably, it’s strategic focus on operational efficiency demonstrated by the tripling of net operating income despite a modest rise in costs has laid the groundwork for sustained profitability.