SA's top digital bank grabs $9.5 million local backing for int'l drive

TymeBank, South Africa’s top digital bank, has quietly raised $9.5 million (ZAR 169 million) from African Rainbow Capital (ARC). With this fresh injection of funds reinforcing its position as a rising force, the bank is gearing up for major expansion into Southeast Asia, aiming to replicate it's trajectory in markets like Vietnam and the Philippines.

ARC’s backing,  under the auspices of billionaire Patrice Motsepe, comes at a pivotal moment. TymeBank achieved profitability in December 2023. Unlike many other digital banks still struggling to turn profits, its hybrid approach — combining digital platforms with physical kiosks in retail stores — has paid off. 

Partnerships with major retailers such as Pick n Pay and Boxer have been crucial to attracting more than 150,000 new customers per month, bringing its total customer base to over 8.5 million. This growth has positioned it as a standout player not only in Africa but now, increasingly, elsewhere.

"The growth trajectory of the model is strong, with activity rates exceeding those of South Africa and deposits growing faster than anticipated," reads an ARC statement. Currently, it is the country's fastest-growing bank.

The fintech’s Singapore-based holding company (Holdco), Tyme Global, has spearheaded this international push, already making impressive strides in the region. 

GoTyme, TymeBank’s venture in the Philippines, on the one hand, has acquired 3.58 million customers since its launch in November 2022. What’s more, it expects to become profitable by late 2025. GoTyme’s traction gives TymeBank a springboard to  Indonesia (by the end of 2024).

Like back home, TymeBank’s strategy in Southeast Asia has been fueled by its partnership with the Gokongwei family, one of the Philippines’ most influential business dynasties. Through the JG Summit, the Gokongwei conglomerate provided valuable market entry points, especially in telecommunications, food manufacturing, and petrochemicals. 

The ability to tap into local networks has given it a competitive edge as it prepares to enter the highly populated and digitally evolving Indonesian market.

The bank’s international ambitions, however, do not distract from its continued dominance in South Africa, where over 50,000 small and medium-sized enterprises (SMEs) benefit from its lending products.

Merchant Cash Advance, one of its most up-taken offerings, has grown 30% year-on-year. A merchant cash advance is an alternative type of business financing that advances a lump-sum payment based on future credit or debit card sales. 

In June, TymeBank announced it is on the lookout for $150 million in Series D, as it eyed unicorn status, one that would bolster its ambitions to go global. Its new raise may be a precursor to the main round. 

CEO Coenraad Jonker emphasized the new funding is just one part of a larger vision. The bank is already looking at a potential dual public listing on the New York Stock Exchange (NYSE) and the Johannesburg Stock Exchange (JSE) by 2028, a move that would give it capital and recognition to take on even bigger markets. 

For now, however, the focus remains on scaling its operations in Southeast Asia, where digital banking is experiencing rapid growth amid a shift toward cashless transactions and, more broadly, financial inclusion.

With ARC’s latest investment, TymeBank is better equipped than ever to execute its expansion plans. Already backed by $300 million from investors like Tencent and British International Investment, the bank is poised for even greater growth. 

As it sets its sights on Indonesia and beyond, TymeBank’s approach to digital banking proves a newfound bragging right that "African startups can compete — and win — on the global stage".