Tyme is gaining about 300 000 new customers a month, between 200 000 and 250 000 in South Africa, and 100 000 to 150 000 in the Philippines. File photo: ANA
Tyme, just more than four years old and one of the fastest-growing digital bank groups globally, said yesterday it had raised $77.8 million (R1.5 billion) from two new international investors, Norrsken22 and Blue Earth Capital, to fund further expansion.
The two new shareholders join Tyme following the Series B capital raise launched in January.
TymeBank was the first bank in South Africa to be operated off a cloud-based infrastructure network, and it was the first to be granted a commercial banking licence, co-founder and TymeBank CEO Koen Jonker said in a telephone interview yesterday.
The closing of the second capital raise also coincided with the group reaching 7 million customers this month, which, after entering the market as a disruptor in February 2019, was now entrenched as a credible alternative to legacy banks in this country – consider, for instance, that Nedbank has about 6.3 million customers.
The funds would go in part on payments for Tyme’s acquisition last year of SME funder Retail Capital, it would fund further expansion in the Philippines, and it would be used to enter a third market in South East Asia, possibly Vietnam, which was currently the top choice among the options being considered, Jonker said.
Norrsken22 is an Africa-focused tech growth fund. Blue Earth Capital is an independent global impact investment firm. African Rainbow Capital is Tyme’s major shareholder. Work continues with investors – a Series C was expected to close later this year.
BlueEarth’s principal of Funds and Co-Investments, David Moore, said they invested in Tyme thanks to a partnership with Apis Partners, who look to build on their mission to generate attractive commercial returns alongside priorities of reduced inequalities and greater financial inclusion.
“BlueEarth is excited about backing Tyme’s innovative, retail partnership model that enables affordable access to first-class banking products to all consumers, including those most vulnerable or living in remote locations,” Moore said in a statement.
Norrsken22 managing partner Natalie Kolbe said they had analysed many fintechs on the continent, and Tyme set itself apart with its good growth, differentiated product, and its ability to reach new customer groups.
“The exceptional management team has already built one of the largest challenger banks in the world, and we look forward to being part of the next phase of their journey," Kolbe said.
Jonker said Tyme was gaining about 300 000 new customers a month, between 200 000 and 250 000 in South Africa, and 100 000 to 150 000 in the Philippines, where the potential addressable market was about 2.5 times the size of South Africa.
In South Africa, some 85% of new customers already had another bank account, while 14% to 15% were new to banking. Low fees, high interest rates on savings, customers who purchase value-added services such as electricity, airtime and gaming packages, as well as loyalty integration with partners such as Pick n Pay and Foschini, were among the factors driving the new customer growth, he said.
AEC founder and chairperson Dr Patrice Motsepe said: “We remain committed to further creating value in building a global digital banking portfolio with our fellow shareholders and partners, and we welcome the new investors who have participated in this raise.”
The group’s global operations included a product development and engineering hub in Ho Chi Minh City, Vietnam, which employs a team of skilled people including more than 300 engineers. Tyme’s global headquarters is in Singapore.
BUSINESS REPORT