Fast growing digital banking group TymeBank has successfully secured investments from Tencent and CDC to complete its $180 million (R2.86 billion) Series B capital raise, paving the way for its global expansion.
TymeBank CEO Tauriq Keraan said yesterday that Tencent and CDC had invested an additional $70m – the first part of the capital raise was concluded earlier this year when $110m was secured from Apis Growth Fund II, a private equity fund, and Gokongwei’s JG Summit Holdings (JG Summit).
African Rainbow Capital remains Tyme’s majority shareholder, with just over 50 percent, to retain the black ownership of the bank.
TymeBank, the first bank in South Africa to be operated fully off a cloud-based infrastructure network, has grown fast, acquiring some four million customers in 32 months, and its rate of new customers is accelerating, said Keraan.
Tencent is a leading internet and technology company based in China, and CDC Group is the UK’s development finance institution and impact investor.
Tyme plans to use the $180m to grow TymeBank locally and to fund GOTyme in the Philippines, where it has secured a digital bank licence, in partnership with the Filipino conglomerate Gokongwei Group, with the possibility of further international expansion.
The investments will enable TymeBank to use its digital infrastructure to accelerate the rollout of financial services to its historic mass-market customer base. The two new investor’s capital and expertise would also be used to improve risk management and support expansion into markets where CDC has a presence, said Keraan.
The bank’s model of digital banking and physical service has made banking accessible to South Africans across the economic spectrum through partnerships with Pick n Pay and Boxer as well as the largest church in South Africa, the Zion Christian Church.
TymeBank recently partnered with fashion retailer TFG, The Foschini Group, to diversify its customer base into higher income segments.
TymeBank recently launched its buy-now-pay-later product MoreTyme; and a number of value-added services, including the ability of customers to be paid their salaries a day early; and various off-balance-sheet products such as insurance.
edward.west@inl.co.za
BUSINESS REPORT ONLINE