Motsepe’s TymeBank garners 7m customers since launch
Digital bank TymeBank has secured $77 million (R1.4 billion) in its latest capital raise.
This emerged when billionaire Patrice Motsepe-controlled African Rainbow Capital (ARC) today published an investment update to 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 R1.9 billion.
According to the company, across its two markets – South Africa and the Philippines – the business is growing at a pace of 300 000 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 has over seven million customers signed up since its launch in February 2019, with a current monthly acquisition rate of 188 000 customers.
The bank registers an average of 23 million monthly transactions and a 70% 30-day account activity rate, says ARC, adding the focus remains on profitability in the coming months.
GoTyme in the Philippines launched in October 2022 in partnership with the Gokongwei Group and is currently exceeding its business plan targets, says ARC.
As part of a recently concluded pre-Series C capital raise, Tyme has 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 this raise.
ARC notes it followed its rights and is still in control of the Tyme Group.
The funds raised are intended to further operations in SA and the Philippines and for possible future expansion. The Series C capital raise is currently under way with several potential investors and is expected to close later this year.