South African digital bank TymeBank has reported a significant increase in its deposits, reaching nearly R7 billion (approximately $385 million) just three months after achieving unicorn status. This information was disclosed in the interim financial results released by its majority shareholder, African Rainbow Capital (ARC).
The Johannesburg-listed investment firm, which is controlled by businessman Patrice Motsepe, provided these figures in its financial report for the six months ending December 31, 2024. ARC holds a 57.7% stake in TymeBank, which proudly positions itself as South Africa’s first fully digital bank.
The rise in deposits from R6.3 billion (around $347.11 million) in June 2024 underscores the ongoing growth of the digital lender, which reached a remarkable milestone of 10.7 million customers by the end of December. ARC emphasized the bank’s consistent monthly growth in income-generating transactions, alongside a high net promoter score that reflects strong customer satisfaction.
TymeBank’s parent company, Tyme Group, which also encompasses its international division, Tyme Global, reported a net fair value gain of R27 million (approximately $1.49 million) during the reporting period. This gain occurred despite a reduction in the overall valuation of Tyme Group, which ARC attributed to a decrease in the valuation of Sanlam’s investment, dropping from R3.92 billion (around $215.98 million) to R3.45 billion (approximately $190.08 million).
Following a successful $250 million Series D funding round in December 2024, the reporting structure for TymeBank and Tyme Global has been separated. This funding round propelled Tyme Group to a valuation of $1.5 billion, granting it the coveted unicorn status. The funding was led by Nu Holdings, a prominent Latin American financial technology giant and the parent company of Nubank.
ARC noted that it proportionally increased its shareholding in TymeBank during the capital raise to better align shareholder interests. However, it also acknowledged that TymeBank’s valuation was “conservatively adjusted downward by R324 million (approximately $17.85 million)” to reflect the pricing established during the Series D round.
Despite this valuation adjustment, ARC remains optimistic about TymeBank’s future, highlighting that the bank has demonstrated “consistently higher growth in customer onboarding compared to international peers.” TymeBank is actively investing in long-term strategic initiatives, including advanced data analytics and artificial intelligence, aimed at enhancing customer experience and developing innovative products.
While these investments may create short-term pressure on profitability, ARC believes they are essential for strengthening TymeBank’s competitive position and ensuring sustained long-term growth. The bank has also established strategic partnerships with major retail and fintech players, including TFG, Boxer, Pick n Pay, and Kazang.
Looking ahead, TymeBank aims to expand its lending portfolio to further enhance its revenue generation capabilities. Net advances have increased from R1.9 billion (approximately $104.68 million) to R2.3 billion (around $126.72 million). The bank plans to introduce new secured lending products, such as vehicle finance, leveraging its existing infrastructure and customer base. The continued growth and strategic investments signal a positive outlook for TymeBank as it solidifies its position within the South African banking landscape.
