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South African digital bank TymeBank has secured an investment of R1.6-billion from global investors.
TymeBank has secured an investment of R1.6-billion from several global investors
According to reports from TymeBank, the funding will be used to bolster the digital bank’s growth and further its path to commercial success. In addition, the investment will enable the bank to expand its current offering of banking products and grow its lending portfolio.
The new investors for this round of funding include Apis Growth Fund II, a private equity fund managed by Apis Partners (Apis), and JG Summit Holdings (JG Summit).
In a press release, Dr Patrice Motsepe, Chairman of African Rainbow Capital, the majority owner of TymeBank comments on the investment received and the new partnership and provides insight into the named investors.
“As the controlling shareholder in TymeBank, African Rainbow Capital is delighted to have our new co-investors onboard. Equally important, Apis and the Gokongwei family invest in TymeBank at a time when significant uncertainty reigns globally and in South Africa as a result of the Covid-19 pandemic. The invested amount of R1.6 billion is no small feat – both in terms of drawing investment into South Africa’s financial services sector as well as investing into a fledgling part of the sector in our country. We look forward to a long-term partnership with Apis and the Gokongwei family.”
Of the total of R1.6-million invested, ‘some’ R500-million has already been invested and the balance will be provided over the next year to 15 months.
The new investors have also entered an agreement to launch a digital bank in the Philippines.
Launching in 2019, TymeBank is the first bank in the country to be operated fully off a cloud-based infrastructure network. The fintech company is a member of the Tyme group of companies.
With an aim to provide financial services to the underbanked individuals in South Africa, the digital bank offers a transactional bank account with no monthly fees and an immediate access savings product with a competitive interest rate.
Currently, TymeBank is working on improving and expanding its offering of products including; insurance, credit cards, and other value-added services to customers.
The aim of expanding and improving the above-mentioned offering is in line with the bank’s aim of increasing access to financial services for entrepreneurs and SME owners.
Tauriq Keraan, Chief Executive Officer of TymeBank explains that the investment will elevate the fintech’s current offering for South Africans.
“The establishment of digital banks in South Africa is in its infancy. Growth in this particular segment of financial services is only possible with investments from partners who understand and support the growth trajectory of digital banks. Our new shareholders in TymeBank have significant experience in digital financial services in key emerging markets. We certainly look forward to learning from their experience to enhance our offering to South African customers.”
Featured image: Timeo Buehrer via Unsplash