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Tencent and the UK’s development financier have lately given TymeBank’s sister firm $70 million (about R1.1 billion) to extend its operations.
Tyme, the worldwide branch of TymeBank that shares the same shareholders as the local digital bank, stated on Tuesday that it had completed a capital round with Tencent and CDC Group as investors.
Tencent is a Chinese internet and technology giant, while CDC Group is a development finance organization and impact investor in the United Kingdom.
The US$180 million will be used to fund and build TymeBank in South Africa, as well as GOTyme in the Philippines, according to Tyme. In collaboration with Filipino giant Gokongwei Group, the company has recently obtained a digital bank license.
Tyme has successfully completed a capital raise for the second time in a year. It received US$110 million from a private equity firm run by Apis Partners LLP and JG Summit Holdings earlier this year.
Despite the capital raising, Patrice Motsepe’s African Rainbow Capital remains the banking group’s dominant stakeholder.
According to Tyme, the increased capital opens up the option of further worldwide expansion. “The two investor’s capital and expertise will also be used to improve Tyme’s ability to manage risk and support Tyme’s expansion into markets where CDC has a presence,” wrote the banking group in a statement.
The funds will also be used to speed up TymeBank’s delivery of financial services to its mass-market customers in South Africa.TymeBank has four million customers in South Africa.
It has been expanding its product line, including MoreTyme, a buy-now-pay-later credit product, as well as a number of additional value-added services.
It presently has R2.8 billion in retail deposits from consumers in its bank accounts, and since March 2020, it has attracted R33 billion in gross deposits.
Story by : Norvisi Mawunyegah