Tyme Bank, the digital banking group controlled by Africa’s first Black billionaire Patrice Motsepe, aims to achieve unicorn status by surpassing the $1-billion valuation mark in its forthcoming funding round scheduled for this year.
The bank, established nearly five years ago, is eyeing substantial funding of up to $100 million in a Series-D round, with CEO Coenraad Jonker expressing confidence that it could propel the institution’s valuation beyond the coveted billion-dollar threshold.
Jonker revealed that the funds raised will be allocated towards expansion initiatives, with a primary focus on penetrating the Vietnamese market in the second quarter of 2024.
Tyme Bank’s strategic vision: From 2019 inception to 8.5 million customers and beyond
Tyme Bank, partially owned by ARC Financial Services Holding — a Black-controlled entity under Ubuntu-Botho Investments (UBI) a holding company founded by Motsepe — has experienced remarkable growth since its inception in 2019. Boasting a customer base of 8.5 million, the bank has thrived with support from ARC and strategic leadership from Motsepe.
Motivated by Vietnam’s robust economy, characterized by a GDP exceeding $400 billion, a youthful population, and rapid economic growth, Tyme Bank sees expansion into the country as a golden opportunity to extend its financial services to previously underserved segments.
Recent funding rounds have fortified Tyme Bank’s growth potential, with a $77.8-million secured during a pre-Series-C funding round in 2023. International investors Norssken22 and Blue Earth Capital have expressed confidence in Tyme Bank’s vision, positioning the bank for continued expansion and solidifying its standing in the competitive digital banking sector.
Tyme Bank’s first profitable month revealed, signaling resilience and growth
Notably, Tyme Bank recently disclosed a significant achievement, its first profitable month in December 2023 — marking a remarkable turnaround since reporting a substantial loss of R858 million ($45 million) on June 30, 2023.
While the exact profit figure remains undisclosed, this success underscores the bank’s resilience and strategic growth trajectory, positioning Tyme Bank among the fastest-growing digital banks globally. The achievement highlights the bank’s ability to navigate challenges and stay committed to its mission despite facing setbacks.