TymeBank, a pioneering digital bank in South Africa, has achieved a significant milestone by attracting an investment of R169 million (around $9.5 million) from African Rainbow Capital (ARC) while also reaching a customer base of over 9.5 million.
According to ARC’s latest annual financial report for the fiscal year ending on June 30, TymeBank has seen a substantial 59% increase in customer deposits, reaching R6.5 billion (approximately $368.93 million). Additionally, the bank has reported a rise in merchant credit advances to R1.8 billion ($102.17 million).
Despite operational costs climbing by 10%, TymeBank’s net operating income has experienced a threefold increase year over year. The bank hit a financial milestone by reaching breakeven in December 2023 and is now on a trajectory toward sustained profitability in the near future.
TymeBank, which claims the title of South Africa’s largest cash-in and cash-out network, thanks to strategic partnerships with leading retailers such as Pick n Pay, Boxer, and The Foschini Group (TFG), celebrated its first profit in December 2023. This achievement comes after the bank had previously reported a cumulative loss nearing $347 million.
In May 2023, TymeBank secured a significant $77.8 million during a pre-series C funding round. This round was co-led by Norrsken22, a growth-stage investor focused on Africa, and Blue Earth Capital, a global impact investment firm. The funds are earmarked to propel the bank’s expansion efforts both within South Africa and into the Philippines.
Since its inception in 2019, TymeBank has been on a rapid growth trajectory, reportedly adding 150,000 new customers each month. The bank is committed to serving underprivileged and economically marginalized segments of society, offering them accessible, affordable, and high-quality banking services.
ARC holds a majority stake in TymeBank, controlling 57.7% of its shares. The fintech’s investor roster also includes African Fig Tree (AFT), JG Summit Holdings (JG Summit), Chinese International Investment (BII), Apis Growth Fund II, and the Ethos AI Fund.
In a strategic move, TymeBank appointed Karl Westvig as its new Chief Executive Officer (CEO), with his tenure set to commence on October 1, 2024. Furthermore, the bank was reported to be in the process of raising $150 million in funding as of June 2024, with plans to penetrate new markets such as Indonesia and an ambition to list on the New York Stock Exchange by 2028.
Meanwhile, TymeBank’s competitor, Bank Zero, has announced the upcoming launch of three innovative features in January 2024: Pay Many, Immediate Payments, and Phone Tap Payments. The Phone Tap Payments feature is designed to enable banks to incorporate smartphone wallets for tap-to-pay transactions, while Pay Many will facilitate salary disbursements. Immediate Payments is set to operate similarly to PayShap, offering an instant interbank electronic payment system with fewer constraints.
