26 May 2023
Tyme Group – owner of digital bank ‘Tyme Bank’ - has secured $77.8 million in a pre-series C capital raise, backed by new international investors.
Fresh funds were raised by Tyme’s existing shareholders, along with investment from two new shareholders – Norrsken22, an Africa-focused tech growth fund, and Blue Earth Capital (Blue Earth), an independent global impact investment firm. The funds are intended to further operations in South Africa and the Philippines, for future expansion in southeast Asia, and a partial share buyback.
Tyme has a revenue run rate of over $100 million per annum and the business (across South Africa and the Philippines) is growing at a pace of 300,000 new customers a month.
In South Africa, TymeBank, which launched in February 2019, serves over 7 million customers, with a current acquisition rate of 200,000 customers per month and a 70% 30-day account activity rate.
In the Philippines, GoTyme was launched in October 2022, in partnership with the Gokongwei Group. The digital bank is modelled on South Africa’s TymeBank, with a concept that improves financial access as it offers Filipino consumers ‘quality, affordable and accessible financial service solutions.’
“We remain excited and committed to further creating value in building a global digital banking portfolio with our fellow shareholders and partners and we welcome the new investors who have participated in this raise,” said Patrice Motsepe, ARC founder and chairman.
“We invested in Tyme Group thanks to our long-standing partnership with Apis Partners, who look to build on their mission to generate attractive commercial returns alongside key priorities of reduced inequalities and greater financial inclusion,” said David Moore, principal of funds and co-investments, BlueEarth. “BlueEarth is excited about backing Tyme’s innovative, retail partnership model, which enables affordable access to first-class banking products to all consumers, including those most vulnerable or living in remote locations.”
"We are delighted to invest in Tyme. The company offers a unique product with huge customer appeal, which has led to fast and sustained growth,” said Natalie Kolbe, managing partner at Norrsken22. “We have analysed a lot of fintechs from across the continent, and Tyme set itself apart with its impressive growth, its differentiated product, and its unique ability to reach and serve new customer groups. The exceptional management team have already built one of the largest challenger banks in the world, and we are looking forward to being part of the next phase of their journey."