South Africa’s Tymebank raises $9.5 million

TymeBank, South Africa’s leading digital bank, has reached a major milestone by securing a significant investment of R169 million ($9.5 million) from African Rainbow Capital (ARC) as it surpasses 9.5 million customers.

Key Growth Highlights

– Deposits are up by 59%, now totaling R6.5 billion ($368.93 million)

– Merchant Credit Advances increased to R1.8 billion ($102.17 million)

– Net Operating Income tripled year-on-year, despite a 10% rise in operational costs

In a landmark achievement, TymeBank broke even in December 2023, and profitability is now on the horizon. Their expansive cash-in and cash-out network, thanks to partnerships with retailers like Pick n Pay, Boxer Superstores, and TFG (The Foschini Group), has been instrumental in their growth. After accumulating a loss of nearly $347 million, the bank achieved its first-ever profit in December 2023, four years after its establishment.

Founded in 2019, TymeBank continues to grow its customer base by 150,000 monthly, providing accessible and affordable financial services to underserved and economically marginalized groups. With ARC holding a controlling stake of 57.7%, and other investors like African Fig Tree (AFT) and Apis Growth Fund II, TymeBank is well-positioned for further expansion.

In July 2024, the bank appointed Karl Westvig as its new CEO, effective from October 2024. TymeBank’s strategic focus on innovation and expansion signals a promising future in Africa and globally.

Meanwhile, competitors like Bank Zero are innovating with features like Phone Tap Payments and Immediate Payments, pushing the industry toward faster, more integrated payment solutions.

TymeBank is ready to take on new markets and redefine the future of digital banking!