Tymebank bank cards. Picture: Supplied
Mobile data services provider, rain, saw significant growth in mobile customers in the three months to September 30, which was the first quarter of the 2025 financial year of African Rainbow Capital Investments (ARCI), which owns 20.35% of the 4G and 5G of rain.
rain is unlisted, and the operational update of ARCI yesterday provided some insight into the financial position of South Africa’s fifth biggest cellphone company.
The growth in mobile customers was fuelled by popularity of rainOne and rain mobile offerings, ARCI directors said. They said this further underscored by a major network upgrade to Huawei’s Apollo 5.5G, boosting performance and capacity.
Additionally, rain expanded its connectivity options with new offerings, including the 101 pro and 101 extender, providing customers with more choices.
Another ARCI investment is its 59% shareholding in the fast-growing but still young online bank, TymeBank, which launched in 2019.
“Tyme Group continues its strong growth trajectory, with 14.4 million customers across TymeBank (10 million) and GoTymeBank (4.4 million) as of September 30, 2024,” ARCI directors said.
GoTymeBank operates in the Philippines.
They said TymeBank achieved sustainable profit levels on September 30, 2024, while GoTymeBank continued to track in line with key metrics.
TymeBank’s acquisition of Savii, a Philippine payroll lender, was finalised. Retail Capital former CEO Karl Westvig was appointed TymeBank CEO from October 1, 2024.
ARCI directors said TymeBank continued to grow its lending book. The deposit base continued to grow, with notable growth in the fixed deposit product aligned with expectations.
A Series D capital raise was being pursued by the bank to enhance profitability of existing operations and fuel expansion into new markets.
ARCI invested an additional R140 million in rock phosphate company operating at Elandsfontein and in the Congo, Kropz Plc (Kropz), during the three-months.
Production at Kropz Elandsfontein was slowed to reduce operational costs and losses as process modifications were implemented. Kropz Elandsfontein expected these modifications would result in production efficiencies..
After September, the African Rainbow Capital Fund injected an additional R270m as part of restructuring and capital raise deals of Kropz Group.
The Bluespec Group continued to be a strong performer within the business process outsourcing (BPO) pillar of the ARC Fund. The group was performing in line with high growth budgets set by the board.
“The Weeleebusiness is growing, with successful marketing campaigns and monthly sales volumes increasing. The group continues to deploy technology to drive efficiencies across all operations and increased financial performance,” ARCI directors said.
“We expect strong growth into the medium term with new product and service offerings, and we believe the management base is strong and highly competent to execute the growth strategy successfully.”
ARCI said South Africa’s post-election business landscape was marked by cautious optimism, with increased investor interest tempered by uncertainty surrounding policy direction under the newly formed government of national unity.
“While significant economic challenges persist, recent interest rate cuts and growing political stability signal potential for improved consumer spending and business confidence. However, tangible benefits are likely to emerge gradually rather than immediately.”
The ARC and the various executive management teams were focused on optimising operational efficiency and profitability. This included restructuring initiatives, strategic partnerships, and a commitment to expanding market share through increased footprint, product diversification, and digital innovation.
Ooba was experiencing a marked increase in home loan applications following the recent interest rate cut. This positive trend was reflected in key metrics exceeding budget expectations, including average daily application intake, average bond size, and conversion rates.
October bond production increased significantly, up 18.7% compared to the same period last year and 26.8% compared to the previous month.
Crossfin sold its portfolio company, Adumo, to Lesaka Technologies for R1.6 billion. This transaction resulted in ARC acquiring shares in Lesaka Technologies. Crossfin delivered strong year-on-year performance.
Capital Legacy, an estate administrator, continued its growth trajectory despite economic headwinds.
BUSINESS REPORT