TymeBank, backed by Africa’s first Black billionaire Patrice Motsepe, eyes affluent market

Omokolade Ajayi -

Key Point

  • South Africa’s TymeBank, backed by billionaire Patrice Motsepe, is expanding beyond its mass-market focus to target affluent customers.
  • The bank aims to raise $150 million to fuel growth, expand into new markets, and potentially become South Africa’s next unicorn.
  • With over 12 million customers and strong financial performance, TymeBank is poised for further growth and profitability.

South Africa’s leading digital bank, TymeBank, controlled by Patrice Motsepe, Africa’s first Black billionaire, is expanding its reach to the affluent segment. The bank plans to introduce new products and forge distribution partnerships to attract high-net-worth customers.

This strategic shift follows the bank’s $77.8 million pre-Series C funding round led by Norrsken22 and Blue Earth Capital. The additional capital will also fuel TymeBank’s expansion into unsecured lending and savings products for the cash-strapped middle class.

TymeBank targets $1 billion valuation with $150 million Series D round

Building on the successful pre-Series C round, TymeBank is eyeing a $150 million Series D funding round to propel its valuation to $1 billion. The funding will support growth initiatives and prepare the bank for an eventual initial public offering (IPO). Shareholders have increased their stake in the business, giving them a combined economic interest of over 50 percent.

The potential $150 million round could position TymeBank as a rare South African unicorn, according to Bloomberg. The bank has rapidly grown its customer base to over 12.4 million, with 9.2 million in South Africa and 3.2 million through its Philippine unit, GoTymeBank.

TymeBank eyes Indonesia as funding round nears completion

Controlled by Patrice Motsepe’s African Rainbow Capital (ARC), TymeBank aims to complete the funding round by the end of the fourth quarter. The proceeds will support expansion plans, including entry into the Indonesian market.

Since its 2019 launch, the bank has achieved remarkable growth, driven by its “phygital” model. The innovative approach combines digital channels with physical touchpoints through strategic partnerships, a model similar to Brazil’s Nu Holdings, which was listed in New York in 2021.

Tyme Group reports soaring revenue and deposits amid Philippines expansion

TymeBank has shown strengthening retention rates and increasing transactional activity, fostering a healthy and growing customer base. The bank achieved profitability in December 2023 and aims for sustained profitability by June 2024.

As part of the move to enhance its market position in the Philippines and increase shareholder value, GoTymeBank acquired Savii, a salary-based lender, to broaden its product offerings and accelerate profitability.

Tyme Group reported an annualized gross revenue run rate of $175 million and net operating income of $110 million. Deposits stand at $600 million, with a lending portfolio of $165 million.