South Africa’s TymeBank completes $180m capital raise from Tencent and CDC

South African fast-growing digital banking group, TymeBank, has successfully secured investments from Tencent and CDC to complete its $180 million Series B capital raise. The investment from Tencent and CDC is pegged at an additional $70 million.

TymeBank is a South African fully black-owned and controlled investment company launched in 2012 by Coen Jonker, Rolf Eichweber, Tjaart van der Waalt. The firm is committed to providing exclusively digital retail bank that aims to provide every South African accessible and affordable banking so that they can take part in, grow and benefit from the country’s economy.

CDC’s investment in Tyme in South Africa is part of its strategy to support businesses that provide vital infrastructure, such as digital financial services, to traditionally underserved groups.

TymeBank has acquired four million customers over the last 3 years, with noticeable acceleration in its acquisition rate including well-established partnerships with national retailers Pick n Pay and Boxer as well as the largest church in South Africa, the Zion Christian Church.

Commenting on the transaction, TymeBank CEO Tauriq Keraan said: “This is a momentous event for TymeBank. We look forward to continuing to demonstrate our strong strategic and execution capabilities to all our investors and to benefit from the deep global expertise that Tencent and CDC have accumulated through a multitude of investments in digital businesses. We are equally excited about the opportunity to pursue the synergies that exist between all our investors and partners, ultimately to ensure added value for our customers.”

Dr. Patrice Motsepe, Chairman of African Rainbow Capital, the majority shareholder of Tyme, said: “We are delighted to welcome Tencent and CDC as our new co-investors in Tyme. The ability to attract investors of this caliber is a testament to the strength of Tyme’s value proposition, and its management. The success of TymeBank in South Africa is an example of the innovation of Tyme’s financial services offering as evidenced in our business model. We look forward to a long, successful relationship with Tencent and CDC.”

The investments will enable Tyme to use its digital infrastructure to accelerate the rollout of financial services to TymeBank’s historic mass-market customer base and fund GOTyme in the Philippines.