Tyme, a digital banking firm, has secured two new foreign investors and successfully funded an additional US$77.8 million as part of a pre-series C capital raising initiated in January.
Norrsken22, which is an Africa-focused digital growth fund, and Blue Earth Capital (BlueEarth), which is an independent global impact investing firm, are the two companies that have recently become shareholders. As part of Tyme’s pre-series C capital campaign, which began in January 2023 and is scheduled to come to an end later this year, the company’s existing shareholders contributed a total of $77.8 million in funding, joining forces with the two new investors.
The cash will be used to partially purchase back some of the company’s shares, as well as to further operations in South Africa and the Philippines, as well as for future expansion into Southeast Asia.
“We invested in Tyme Group thanks to our long-standing partnership with Apis Partners, who look to build on their mission to generate attractive commercial returns alongside key priorities of reduced inequalities and greater financial inclusion,” said David Moore, principal of funds and co-investments at BlueEarth. “Apis Partners looks to build on their mission to generate attractive commercial returns alongside key priorities of reduced inequalities and greater financial inclusion.”
“We have examined a large number of different fintech companies from all across the continent, and Tyme has distinguished itself from the competition with its remarkable growth, its unique offering, and its exceptional capacity to connect and serve new consumer groups. “We are looking forward to being a part of the next phase of their journey,” Natalie Kolbe, managing partner at Norrsken22, added in a statement. “The exceptional management team have already built one of the largest challenger banks in the world.”
The completion of Tyme’s Series B funding round occurred in December 2021. This round of funding brought in a total of $180 million and was spearheaded by current stockholders.
“We remain excited and committed to further creating value in building a global digital banking portfolio with our fellow shareholders and partners,” said Dr Patrice Motsepe, founder and chairman of African Rainbow Capital (ARC), which remains Tyme’s majority shareholder. “We welcome the new investors who have participated in this raise,” he added.
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Customer milestone for Tyme Bank
As of the 12th of May, 2023, TymeBank, the cornerstone of Tyme’s operations in South Africa, celebrates reaching the 7 million client milestone.
The launch of TymeBank in South Africa took place in February 2019, and the company is currently adding 200,000 new members each and every month.
It was the first bank in South Africa to run its operations completely off of a network that was built on cloud architecture.
Following its initial foray into the market as a disruptor, TymeBank has asserted that it has successfully established itself as “the credible alternative to legacy banks” in South Africa.
In order to make banking more accessible to South Africans from all walks of life and across the economic spectrum, TymeBank utilises a hybrid approach that combines digital banking with traditional service.
The bank has formed agreements with the largest church in South Africa, the Zion Christian Church, as well as national shops Pick & Pay and Boxer, the world’s leading fashion retailer, The Foschini Group (TFG), and other prominent fashion retailers.
TymeBank purchased the fintech company Retail Capital in 2022. Retail Capital is the largest SME funder of its sort in the market, having previously granted more than R5.5 billion ($285 million) in working capital to more than 43,000 business owners in South Africa.
Expanding Asian sphere of influence
GoTyme was first introduced to the Philippine market in October 2022 through a collaboration with the Gokongwei Group. In order to provide Filipino clients with financial service alternatives that are both reasonable and easily accessible, the digital bank was modelled after South Africa’s TymeBank.
According to Tyme, the organisation has a revenue run rate of more than $100 million per year. The number of new clients signing up for the service in South Africa and the Philippines is increasing at a rate of 300,000 per month.
As part of its global reach, the company has established a centre for product development and engineering in Ho Chi Minh City, Vietnam. The centre is home to more than 300 engineers.
Singapore, home of Tyme’s worldwide headquarters, is where the company’s functions of strategy, business development, data, analytics, and artificial intelligence are managed.