TymeBank, a pioneering digital bank in South Africa, has embarked on a significant fundraising venture, seeking $150 million (approximately R2.79 billion) to enhance its growth and lay the groundwork for a future initial public offering (IPO), according to Coenraad Jonker, the bank’s co-founder and CEO.
In a recent interview conducted in Johannesburg, Jonker revealed that TymeBank is on the brink of achieving a valuation of nearly $1 billion. The bank is in the midst of a Series D funding round, which is being conducted at a valuation that places it in the prestigious ‘unicorn’ category of startups valued at over $1 billion.
Jonker outlined TymeBank’s ambitious plans to debut on the stock market, aiming for a listing on the New York Stock Exchange by the year 2028. Additionally, to accommodate its South African investors, the bank is considering a secondary listing on the Johannesburg Stock Exchange.
With African Rainbow Capital, owned by the renowned African billionaire Patrice Motsepe, at the helm, TymeBank anticipates finalizing this funding round by the end of the fourth quarter. The capital raised will be allocated to the bank’s strategic expansion initiatives, including its entry into the Indonesian market, which is slated for the end of the current year, as Jonker noted.
TymeBank has rapidly become one of Africa’s most swiftly expanding digital banks, adopting a business model akin to that of Brazil’s Nu, which also has Tencent as an investor and successfully went public in New York in 2021.
Since its inception in South Africa in 2019, TymeBank has made significant strides, capturing 10% of the primary bank market share in the continent’s most advanced economy.
Competing directly with established financial institutions such as Standard Bank, Africa’s largest bank, and FirstRand’s First National Bank, TymeBank has emerged as the third-largest and most rapidly growing bank in terms of customer numbers, as per Jonker’s statement.
Having achieved profitability in its South African operations in 2023, TymeBank is now setting its sights on further international expansion. Jonker’s strategy focuses on penetrating rapidly developing Asian markets, with the bank already having a presence in the Philippines and Vietnam.
Jonker’s vision includes reaching profitability in the Philippines within the next 18 months and establishing a comprehensive retail banking offering in Vietnam by the following year.
