• Home
  • /
  • Fintech
  • /
  • Motsepe’s TymeBank to conclude new funding round

Motsepe’s TymeBank to conclude new funding round

Admire Moyo
By Admire Moyo, ITWeb's news editor.
Johannesburg, 07 Dec 2023
Patrice Motsepe, founder of African Rainbow Capital.
Patrice Motsepe, founder of African Rainbow Capital.

Businessman Patrice Motsepe’s Tyme Group − comprising TymeBank and GoTyme − is set to close a new round of funding.

This emerged when the Motsepe-controlled African Rainbow Capital (ARC) today published an investment update for its shareholders.

ARC holds an effective 57.7% stake in TymeBank, which bills itself as South Africa’s first digital-only bank.

In a statement, ARC says Tyme (including TymeBank and GoTyme) has an annual revenue run rate of over R1.8 billion for TymeBank and R100 million for GoTyme.

According to the company, across its two markets – South Africa and the Philippines – the business is growing at a pace of 450 000 new customers a month, as it works to provide consumers, particularly the underserved and financially excluded portion of the population, with quality financial services.

It adds that TymeBank now serves over eight million customers since its launch in February 2019, with a current monthly acquisition rate of 200 000 clients.

“The bank registers an average of 23 million monthly transactions and a 70% 30-day account activity rate. The focus remains on profitability in the coming months,” says ARC.

GoTyme launched in the Philippines in October 2022, in partnership with the Gokongwei Group, and is onboarding 250 000 customers per month, with a total customer base of 1.6 million customers, adds the company.

“The bank is exceeding most of its metrics, with deposit growth significantly ahead of forecasts. It will launch the SME merchant cash advance product in the Philippines in the coming weeks.”

ARC notes the Tyme Group is in the process of closing the Series C capital raise with a combination of existing and new shareholders.

In June, ARC said Tyme successfully secured two new international investors – Norssken22, an international tech growth fund, and Blue Earth Capital, an independent global impact investment firm.

New and existing shareholders invested a total of $77 million in the raise.