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TymeBank has received a $70-million capital commitment from the Chinese technology giant Tencent and the UK-based CDC Group in exchange for stakes in the South Africa-based retail bank, ARC Investments announced.
TymeBank was previously wholly owned by African Rainbow Capital (ARC) Financial Services Holding, a Black-owned and -controlled company operating under Ubuntu-Botho Investments (UBI).
UBI operates as an investment holding under South African billionaire mining tycoon Patrice Motsepe, who created the company in 2013.
The financing received by TymeBank in its Series-B funding rounds will position the Johannesburg-based digital retail bank to deploy robust digital infrastructure to accelerate the rollout of financial services to its mass-market customer base.
TymeBank, one of the world’s fastest-growing digital banks, has acquired 4 million customers in 32 months, with a noticeable acceleration in its acquisition rate.
Earlier this year, it secured $110 million as part of its Series-B capital raise from Apis Growth Fund II, a private equity fund managed by Apis Partners LLP and the Gokongwei family’s JG Summit Holdings.
The $70-million investment from Tencent and CDC Group, which comes under its Series-B funding rounds, represents a strong endorsement for TymeBank as one of the world’s fastest-growing digital banks – and for South Africa’s banking sector overall.
The $70-million capital commitment brings the combined capital raised under its Series-B funding rounds to $180 million.
Motsepe, founder and chairman of ARC, the majority shareholder of TymeBank, said the bank’s success in South Africa is an example of its innovation in financial services, and this is evidenced by its business model.
“We are delighted to welcome Tencent and CDC as our new co-investors in Tyme. The ability to attract investors of this calibre is a testament to the global competitiveness of Tyme’s value proposition, and its management,” he said.
The deal comes two months after TymeBank entered into a strategic partnership with the leading retail giant, The Foschini Group (TFG).
The strategic move will see TymeBank deploy its financial products and services in-store and on digital platforms to benefit TFG’s 26 million customers in South Africa.
Last week, the Michael Lewis-led TFG entered into a definitive agreement to acquire Quench, the South African on-demand shopping platform.
