Tyme Group is pursuing a Series D capital raise to enhance the profitability of the existing operations and fuel expansion into new markets.
This was revealed by businessman Patrice Motsepe-controlled African Rainbow Capital (ARC), which today issued an investment update to shareholders.
ARC holds an effective 57.7% stake in TymeBank, which bills itself as South Africa’s first digital-only bank.
In a statement, ARC says Tyme Group continues its strong growth trajectory, with 14.4 million customers across TymeBank (10 million) and GoTymeBank (4.4 million) as of 30 September.
It says the average activity rate is 74% across these customers, including transactional activity and deposit balances.
ARC notes TymeBank achieved sustainable profit levels as at 30 September, while GoTymeBank continues to track in line with its key metrics.
The acquisition of Savii, a Philippine payroll lender, has been finalised and integration is under way, it adds.
Strengthening its leadership, TymeBank appointed Karl Westvig, former CEO of Retail Capital, as its new CEO, effective 1 October.
“TymeBank continues to grow its lending book within well-defined risk parameters. TymeBank's deposit base continues to grow, with notable growth in the fixed deposit product in line with expectations,” it states.
Last year, ARC said Tyme Group was in the process of closing the Series C capital raise with a combination of existing and new shareholders.
It added that Tyme successfully secured two new international investors: Norssken22, an international tech growth fund, and Blue Earth Capital, an independent global impact investment firm.
New and existing shareholders invested a total of $77 million in the raise.
Meanwhile, ARC, which is also a shareholder in telecommunications firm Rain, says the business has reported a successful quarter, marked by significant growth in mobile customers, fuelled by the popularity of its RainOne and Rain mobile offerings.
It explains this success is further underscored by a major network upgrade to Huawei’s Apollo 5.5G, boosting performance and capacity.
“Additionally, Rain expanded its connectivity options with new offerings, including the 101 pro and 101 xtender, providing customers with more choices. These achievements highlight Rain's continued growth and momentum in the telecommunications market,” says ARC.
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