Patrice Motsepe’s TymeBank Eyes $1 Billion Valuation

TymeBank, South Africa’s biggest digital bank, is seeking $150 million in a fundraising round that could increase its valuation to $1 billion. This move is intended to accelerate expansion as the bank prepares for an initial public offering (IPO).

TymeBank’s recent investment round might make it a unique South African unicorn, following quick client acquisition in South Africa and the Philippines, according to Bloomberg.TymeBank has 12.4 million customers, including 9.2 million in South Africa and 3.2 million served by GoTymeBank in the Philippines.

“We are currently valued at close to $1 billion and are in the midst of our Series-D capital raise at unicorn valuation,” said Coenraad Jonker, TymeBank’s co-founder and CEO. “Our target is to list TymeBank in New York by 2028, and we will most likely also do a secondary listing on the Johannesburg Stock Exchange for our South African shareholders.”

The premier digital bank, owned by Motsepe’s African Rainbow Capital (ARC), is to close the investment round in the fourth quarter. The funds raised will be used to support TymeBank’s expansion goals, including its projected move into Indonesia by the end of the year.

TymeBank, which is partially owned by ARC Financial Services Holding, has grown rapidly since its establishment in 2019. Its user base now exceeds 12.4 million, making it one of Africa’s fastest-growing digital banks. The bank’s novel “phygital” approach blends digital and physical touchpoints through strategic partnerships, akin to Brazil’s Nu Holdings, which was listed in New York in 2021.

TymeBank has demonstrated improved retention rates and increased transactional activity, resulting in a healthy and growing customer base.The bank attained profitability in December 2023 and plans to sustain it by June 2024. To strengthen its market position in the Philippines and increase shareholder value, GoTymeBank purchased Savii, a salary-based lender, in order to diversify its product offerings and expedite profitability.

Tyme Group reported a yearly gross sales run rate of $175 million and net operating income of $110 million, as per an update from Patrice Motsepe’s investment business, African Rainbow Capital. The group’s deposits total $600 million, with a lending portfolio worth $165 million. The Series D fundraising round will help GoTymeBank achieve its expansion and profitability goals by the end of Q4 2025. Shareholders have expanded their investment in GoTymeBank, bringing the Group’s economic interest to more than 50%.

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