TymeBank, a South African digital banking platform, has raised $77.8 million in a pre-Series C funding round.
The round was led by African-focused growth-stage fund Norrsken22 and Swiss global impact investment firm Blue Earth Capital.
Tencent, the lead investor in the fintech’s $70 million Series B extension raise in December 2021, also participated in this pre-Series C round and increased its stake to become TymeBank’s third-largest shareholder.
TymeBank expects to close its Series C round later this year.
TymeBank was launched in February 2019 and employs a hybrid digital banking and physical service operations model.
It offers a transactional bank account with zero or low monthly fees and a savings product to its customers, most of whom are onboarded via physical locations, including national retailers Pick n Pay and Boxer, top fashion retailer The Foschini Group (TFG), and one of the largest churches in South Africa, the Zion Christian Church.
TymeBank has also seen many accounts opened online and a shift from cash deposits to electronic transfers.
The fintech moved into business banking last year, acquiring Retail Capital, a fintech that has provided over R5 billion in working capital to more than 43,000 business owners in South Africa.
TymeBank claims to be recording a revenue run rate of over $100 million annually as its business across South Africa and the Philippines is growing at 300,000 new customers monthly.
The company saysthat the exponential growth in customer numbers shows how it is serving consumers’ needs and is now entrenched as a credible alternative to legacy banks in the country.
The fintech has now hit a 7 million customer milestone in South Africa alone, up from its previous target of 3 million customers.
TymeBank’s majority owner is Patrice Motsepe’s African Rainbow Capital, and it is backed by other investors, including international investment firms and funds such as British International Investment and Apis Growth Fund II.
TymeBank is a member of the Tyme Group of companies headquartered in Singapore, which focuses on designing, building, and operating digital banks for emerging markets.
Tyme’s brand in South Africa is TymeBank, and in the Philippines, it is GoTyme, its first market in Asia, which the fintech launched last October in partnership with the Gokongwei Group.
TymeBank intends to use the new capital to further operations in South Africa and the Philippines and for future expansion in Southeast Asia.
Tyme’s global footprint includes its product development and engineering hub in Vietnam and its headquarters in Singapore, leading strategy, business development, data, analytics, and artificial intelligence functions.
The funding is significant for TymeBank and reflects investors’ confidence in the fintech’s business model and growth potential.
The pre-Series C round also saw Tencent increase its stake in TymeBank, indicating the Chinese tech giant’s growing interest in African fintechs and its commitment to expanding its presencein the region.
TymeBank’s success also highlights the growing demand for digital banking services in emerging markets, where traditional banking services are often inaccessible or expensive.
Source: Techcrunch
