Tyme, a global digital bank and the parent company of South Africa’s TymeBank has successfully secured $77.8 million in a pre-Series C capital raise. The funding, which comes from two new investors – Norrsken22 and Blue Earth Capital, will serve as a catalyst for the company’s ambitious plans of expanding its global reach.
The news comes shortly after the group’s flagship SA entity, TymeBank, reached the 7-million-customer milestone on May 12.
The new investor, Norrsken22 is an African-focused tech growth fund. Blue Earth Capital is an independent global impact investment firm. In the meantime, old investor, Tencent has increased its shareholding to become Tyme’s third largest shareholder.
“We are delighted to welcome Norrsken22 and Blue Earth Capital to the group of high-calibre investors who have bought into Tyme’s growth story and its mission to democratise financial services by lowering cost and other barriers to access.”Coen Jonker, co-founder of Tyme and TymeBank CEO
Expressing delight at the new partnership, Natalie Kolbe, Managing Partner, Norrsken22, said that the fintech company has distinguished itself amongst the many other fintech companies over time with its growth and unique product offering.
“We are delighted to invest in Tyme. The company offers a unique product with huge customer appeal. This has led to fast and sustained growth. We have analysed a lot of fintechs from across the continent. Tyme set itself apart with its impressive growth, its differentiated product, and its unique ability to reach and serve new customer groups. The exceptional management team have already built one of the largest challenger banks in the world. We are looking forward to being part of the next phase of their journey,” she said.
One of the company’s numerous accomplishments is that it was the first bank in South Africa to run entirely on a cloud-based infrastructure network. According to the bank, opening a fully regulated bank account may now be done in under five minutes.
The funding is intended to further operations in South Africa and the Philippines. The company is also planning for future expansion in Southeast Asia.
The company reports a revenue run rate of over $100m per year. Across two markets, the bank is adding 300,000 new customers per month. It reports a 70%, 30-day account activity rate.
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Tyme’s unique selling proposition
Tyme is a South African fintech company that has gained significant recognition in the financial technology sector. The company was founded with the goal of addressing financial inclusion challenges and providing accessible banking services to underserved communities.
Its unique selling proposition lies in its innovative approach to digital banking and its focus on empowering individuals with convenient and affordable financial solutions.
The hybrid banking strategy used by TymeBank, which combines digital and physical services, has opened up banking to South Africans from all socioeconomic classes. The bank has long-standing relationships with major fashion stores TFG (The Foschini Group), national retailers Pick & Pay and Boxer, and the Zion Christian Church, the biggest church in South Africa.
David Moore, Principal of Funds and Co-Investments at BlueEarth, said: “We invested in Tyme Group thanks to our long-standing partnership with Apis Partners who look to build on their mission to generate attractive commercial returns alongside key priorities of reduced inequalities and greater financial inclusion. BlueEarth is excited about backing Tyme’s innovative, retail partnership model. This enables affordable access to first-class banking products to all consumers, including those most vulnerable or living in remote locations.”
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New expansion plans
With the bank still expected to close its Series C round later in the year, the capital offering, led by existing shareholders, has raised $180 million in total. The majority shareholder of the company remains African Rainbow Capital (ARC), and its founders say it remains committed to creating value with its partnership with the digital banking company.
“We remain excited and committed to further creating value in building a global digital banking portfolio with our fellow shareholders and partners. We welcome the new investors who have participated in this raise.”Dr Patrice Motsepe, Founder and Chairman of ARC
In 2022 TymeBank acquired fintech, Retail Capital. This has already provided more than 43,000 business owners in South Africa with over ZAR5.5bn in working capital. This makes it the largest SME funder of its kind in the sector.
GoTyme in the Philippines launched in October 2022 in partnership with the Gokongwei Group. The digital bank was modelled on South Africa’s TymeBank. The imported concept has progressed financial access as it offers Filipino consumers quality, affordable and accessible financial service solutions.
With its low-cost banking option, high levels of customer satisfaction, and the successful launch of different products and services, the digital bank claims it continues to make a meaningful impact in the lives of people.
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