TymeBank, one of the world’s fastest growing digital banking companies, has completed its US$180 million Series B capital raising with investments from Tencent and CDC. Tencent and CDC are expected to invest an extra US$70 million. The investment from Tencent and CDC is pegged at an additional US$70 million.
“This is a momentous event for TymeBank. We look forward to continuing to demonstrate our strong strategic and execution capabilities to all our investors and to benefit from the deep global expertise that Tencent and CDC have accumulated through a multitude of investments in digital businesses. We are equally excited about the opportunity to pursue the synergies that exist between all our investors and partners, ultimately to ensure added value for our customers,” TymeBank CEO Tauriq Keraan said.
Tyme raised US$110 million from Apis Growth Fund II, a private equity fund managed by Apis Partners LLP, and Gokongwei’s JG Summit Holdings (JG Summit) in the first half of its Series B round earlier this year.
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Tyme will be able to use its digital infrastructure to speed up the delivery of financial services to TymeBank’s historic mass market client base as a result of the investments. Tyme’s ability to manage risk will be improved, and the two investors’ resources and experience will be used to help Tyme’s expansion into markets where CDC has a presence.
The company, which has its roots in South Africa, will also use the US$180 million raised to fund and grow TymeBank in that country, as well as GOTyme in the Philippines, where it has secured a digital bank license in partnership with the Gokongwei Group, the Philippines’ largest conglomerate, with the possibility of further international expansion.
Why The Investors Invested
The investment by Tencent and CDC represents a strong endorsement for both TymeBank — as one of the world’s fastest growing digital banks — and for South Africa’s banking sector overall.
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The CDC’s investment in Tyme in South Africa is part of its aim to encourage enterprises that deliver critical infrastructure to previously underrepresented communities, such as digital financial services. Tyme’s majority stakeholder is still African Rainbow Capital. TymeBank, one of the world’s fastest-growing digital banks, has accumulated four million customers in 32 months, indicating a significant increase in its acquisition rate.
“This is a very welcome investment from Tencent and CDC. It is a clear vote of confidence in our digital banking offering as well as our leadership teams in South Africa, Singapore, and the Philippines. Tyme’s global footprint now includes a product development and engineering hub in Ho Chi Minh city, Vietnam and banking businesses in South Africa and the Philippines. We have successfully attracted a team of skilled people, which includes over two hundred engineers, and established strategy, business development, data, analytics and Artificial Intelligence (AI) functions in our global headquarters in Singapore,” Mr Coen Jonker, co-founder of Tyme said.
Dr Patrice Motsepe, Chairman of African Rainbow Capital, majority shareholder of Tyme, said:
“We are delighted to welcome Tencent and CDC as our new co-investors in Tyme. The ability to attract investors of this calibre is a testament to the strength of Tyme’s value proposition, and its management. The success of TymeBank in South Africa is an example of the innovation of Tyme’s financial services offering as evidenced in our business model. We look forward to a long, successful relationship with Tencent and CDC.”
Tencent is a Chinese internet and technology giant, while CDC Group is a development finance organization and impact investor in the United Kingdom.
A Look At What Tyme Does
Launched in 2019 by founders Coen Jonker, Rolf Eichweber, Tjaart van der Waalt, TymeBank is South Africa’s first digital bank.
South Africans from all walks of life can now bank thanks to a hybrid model that combines digital and physical services. It has long-standing relationships with national shops Pick n Pay and Boxer, as well as South Africa’s largest church, the Zion Christian Church. It also recently teamed with TFG, The Foschini Group, a leading fashion retailer, to expand its customer base into higher income sectors and create a feasible path to responsible consumer lending (subject to regulatory clearances where appropriate).
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TymeBank has continued to diversify its product offering, most recently launching MoreTyme, a buy-now, pay-later product; a number of value-added services, such as the opportunity for customers to get paid a day early; and numerous off-balance sheet goods, such as insurance. Throughout its expansion, it has maintained high levels of client satisfaction as well as price and savings rate competition.
The majority of new TymeBank accounts are formed at kiosks; nevertheless, the bank has seen a significant growth in accounts opened online, as well as a gradual transition from cash deposits to electronic transfers. It now has R2.8 billion in deposit balances from consumers and sole proprietors, and has received R33 billion in total deposits from the general public since the outbreak in March 2020.
TymeBank is completely regulated and held to the same safety and security requirements as all other South African banks. TymeBank is South Africa’s first bank to run entirely on a cloud-based infrastructure network. It was also the first commercial bank to be given a license since 1999.
In August of this year, GOTyme was awarded one of six digital banking licenses in the Philippines. Tyme’s approach is to include banking into people’s daily life, making it a seamless element of shopping and commercial transactions.
This is especially essential in a country where over 70% of the population is unbanked. Tyme is on schedule to launch in the third quarter of 2022, with construction currently ongoing in the Philippines. It intends to take use of its connection with JG Summit as well as its retail environment. The investments are subject to antecedent conditions and regulatory clearances, which are standard for transactions of this sort.
TymeBank digital bank TymeBank digital bank
Charles Rapulu Udoh
Charles Rapulu Udoh is a Lagos-based lawyer who has advised startups across Africa on issues such as startup funding (Venture Capital, Debt financing, private equity, angel investing etc), taxation, strategies, etc. He also has special focus on the protection of business or brands’ intellectual property rights ( such as trademark, patent or design) across Africa and other foreign jurisdictions.
He is well versed on issues of ESG (sustainability), media and entertainment law, corporate finance and governance.
He is also an award-winning writer