- TymeBank, a digital bank in South Africa, has secured an investment of R169 million (approximately $9.5 million) from African Rainbow Capital (ARC) as it surpassed 9.5 million customers.
- Per the new ARC’s annual financial results for the fiscal year ended 30 June, the digital bank’s deposits have grown by 59% to R6.5 billion ($368.93 million), and merchant credit advances have risen to R1.8 billion ($102.17 million).
- TymeBank's net operating income has tripled year on year, despite a 10% increase in operational costs. The bank achieved breakeven in December 2023, and sustained profitability is expected in the coming months.
The bank, which boasts of the largest cash-in and cash-out network in South Africa, due to partnerships with major retailers such as Pick n Pay, Boxer, and The Foschini Group (TFG), achieved its first-ever profit in December 2023 after previously accumulating a loss of nearly $347 million.
In May 2023, it secured $77.8 million in a pre-series C funding round, co-led by Norrsken22, an African growth-stage investor, and Blue Earth Capital, a global impact investment firm, to boost its growth in South Africa and the Philippines.
Founded in 2019, TymeBank claims to have added 150,000 customers monthly, targeting the underprivileged and economically marginalised groups in society with its easily accessible, affordable, and quality banking services.
ARC owns the majority of shares in the bank, with a controlling stake of 57.7%. Other investors in the fintech are African Fig Tree (AFT), JG Summit Holdings (JG Summit), Chinese International Investment (BII), Apis Growth Fund II, and the Ethos AI Fund.
In July 2024, the bank appointed Karl Westvig as its new Chief Executive Officer (CEO) effective from October 1, 2024. Additionally, it was reportedly raising $150 million in funding in June 2024 to expand into new markets, including Indonesia, and aims to list on the New York Stock Exchange by 2028.
One of its competitors, Bank Zero, announced plans to launch three new features in January 2024: Pay Many, Immediate Payments, and Phone Tap Payments. The Phone Tap Payments feature will allow banks to integrate smartphone wallets for tap-to-pay transactions.
Pay Many can be used to make salary payments, whereas Immediate Payments works similarly to PayShap, an instant interbank electronic payment system with fewer restrictions.