South African digital bank, TymeBank, controlled by Africa’s first Black billionaire Patrice Motsepe, is set to embark on an ambitious expansion plan by entering the Vietnamese market as early as next year.
The move comes after the bank secured nearly $78 million from a pre-series C funding round, providing the necessary capital for its regional expansion.
With more than 6.2 million customers and a rapidly growing presence in South Africa and the Philippines, TymeBank is confident that Vietnam is a perfect fit for its business model.
Coen Jonker, CEO of TymeBank, described Vietnam as a “chronically underserved” market, with a significant number of small businesses lacking access to capital.
TymeBank aims to fill this gap and provide financial services to these underserved segments.
With its young and fast-growing $366 billion economy, Vietnam presents an attractive opportunity for TymeBank’s expansion strategy.
The bank sees great potential in the market characterized by low unemployment levels and a pressing need for financial inclusion.
TymeBank is optimistic about replicating the success it achieved in the Philippines and capitalizing on Vietnam’s promising economic landscape.
The funds raised from the recent funding round, with $65 million allocated for market expansion and operational activities in South Africa, the Philippines, and Vietnam, will facilitate TymeBank’s ambitious growth plans.
In addition, a portion of the funds will be used to buy out one of the bank’s early investors. TymeBank has also attracted new investors, including Norrsken22, an Africa-focused tech growth fund, and Blue Earth Capital, an independent global impact investment firm.
The bank is actively seeking additional investments in the range of $40 million to $80 million during its full Series-C fundraising round, scheduled to conclude by the fourth quarter.
TymeBank’s success can be attributed in part to its partnership with African Rainbow Capital (ARC) Financial Services Holding, a Black-owned company operating under Ubuntu-Botho Investments (UBI), a holding company founded by Patrice Motsepe.
ARC’s support has been instrumental in acquiring an impressive customer base of 6.2 million since TymeBank’s launch in 2019.
The bank’s expansion strategy includes the recent acquisition of Retail Capital, a prominent fintech lender catering to small and medium-sized enterprises.
TymeBank has formed a strategic partnership with TFG, a leading retailer in South Africa, which could expose the digital bank to over 28 million TFG loyalty program members.
The collaboration aims to offer customers three new financial products for shopping and banking, effectively diversifying their profiles.
The digital-only bank plans to roll out more than 600 kiosks across TFG stores, allowing customers to open TymeBank TFG Money accounts quickly and conveniently.
The partnership also introduces a “Buy-Now-Pay-Later” solution called MoreTyme, promoting financial inclusion and increasing purchasing power for South Africans.