TymeBank, a home-grown digital banking group controlled by business magnate Patrice Motsepe’s African Rainbow Capital (ARC), now has deposits totalling close to R7 billion.
This was disclosed today, when JSE-listed ARC published its interim financial results for the six months to 31 December.
ARC holds an effective 57.7% stake in TymeBank, which bills itself as South Africa’s first digital-only bank.
The JSE-listed investment firm notes Tyme Group (16.3% of fund value) comprises investments held in TymeBank and Tyme Global through Tyme SA Holding and Tyme Group Asia.
It explains that the combined value of Tyme Group reduced as a result of the investment by Sanlam dropping from R3.92 billion at 30 June 2024, to R3.45 billion as at 31 December 2024.
According to ARC, for the period under review, the Tyme Group had net fair value gains of R27 million.
Previously, TymeBank and Tyme Global were disclosed as a single investment due to their shared ownership, strategy and management structure.
However, ARC says following the successful completion of a $250 million Series D funding round led by Nubank, the oversight and evaluation of TymeBank and Tyme Global have become distinct.
As part of this capital raise, the ARC Group proportionally took up more shares in Tymebank SA than in Tyme Global to better align shareholder interests, it notes.
Consequently, ARC adds, they are now disclosed separately for the period ended 31 December 2024.
“TymeBank is a leading digital bank that has shown consistently higher growth in customer onboarding compared to international peers,” says ARC.
It reveals that as of 31 December 2024, the bank had 10.7 million customers and is experiencing consistent monthly growth in income-generating transactions.
Total deposits rose to R6.9 billion, up from R6.3 billion in June 2024, while net advances increased from R1.9 billion to R2.3 billion.
“TymeBank also maintains one of the highest net promoter scores in the industry, reflecting strong customer satisfaction,” ARC states.
“Leveraging technology to drive growth and operational efficiency, TymeBank is making rapid progress toward sustainable monthly profitability.”
At the same time, the firm points out that the bank continues to invest in long-term strategic initiatives − including advanced data analytics and artificial intelligence − to enhance customer experience, develop innovative products and drive higher activity rates.
“While these investments may create some short-term pressure on profitability, they are critical to strengthening the bank's competitive position and ensuring sustained growth over the long-term.”
ARC adds that TymeBank has built strong strategic partnerships with major retail and fintech players, including TFG, Boxer, Pick n Pay and Kazang.
Following the successful completion of its Series D capital raise in December 2024, the bank remains focused on expanding its lending portfolio to further strengthen its revenue-generating capabilities, it says.
“However, the bank's valuation was conservatively adjusted downward by R324 million to reflect the price at which the Series D capital raise was completed in December 2024.”
Tyme Global is headquartered in Singapore and serves as the holding company for the launch of multi-country banks.
The first of these banks is TymeBank in South Africa, followed by GOtyme in the Philippines. GOtyme Bank launched in November 2022, and reached a milestone of five million customers by December 2024.
In June 2024, GOtyme Bank acquired Savii, a payroll lender in the Philippines. According to ARC, this acquisition will allow the bank to utilise its growing deposit base to enter the lending market through a well-established and proven lending model.
Currently, it states, Tyme Global is in the contracting stages with local partners in Vietnam, where they are also piloting a merchant cash advance product.
“During the period, the fair value of the Tyme Global investment was adjusted to reflect the post-money value of the recently closed Series D capital raise, resulting in a positive fair value adjustment of R351 million.”
Share