South African Digital Banking Platform, TymeBank, Raises Over $77 Million as it Onboards Over 300K Customers a Month

TymeBank, a digital banking platform based in South Africa, has secured $77.8 million in a pre-Series C funding round, according to a statement on its website.

The funding was led by Norrsken22, a growth-stage fund focused on Africa, and Blue Earth Capital, a Swiss impact investment firm with a global focus.

Prominent Chinese technology conglomerate, Tencent, was also a participant in the pre-Series C funding round increasing its stake in TymeBank to become the third-largest shareholder in the fintech company. Tencent was the lead investor in TymeBank’s $70 million Series B extension raise in December 2021.

Part of the Tyme Group of companies is headquartered in Singapore and focuses on developing and operating digital banks for emerging markets. It operates under the Tyme brand in South Africa and as GoTyme in the Philippines where it entered the market in partnership with the Gokongwei Group in October 2022.

TymeBank operates using a hybrid model that combines digital banking services with physical locations. It provides customers with transactional bank accounts that have minimal or no monthly fees as well as savings products.

In South Africa, TymeBank has established partnerships with various physical retail locations including popular retailers such as:

• Pick n Pay
• Boxer
• The Foschini Group (TFG)

These partnerships serve as on-boarding points for customers allowing them to access TymeBank’s services conveniently. Additionally, it has collaborated with the Zion Christian Church, one of the largest churches in South Africa, to reach a broader customer base.

TymeBank has experienced a significant number of accounts being opened through online channels reflecting the growing trend of digital banking adoption. Moreover, there has been a noticeable shift among its customers from traditional cash deposits to electronic transfers indicating a transition towards more digital payment methods.

“Tyme was the first bank in South Africa to be operated fully off a cloud-based infrastructure network and now makes it possible to open a fully regulated bank account in less than five minutes, which can be done online or from a TymeBank kiosk. It also takes nine seconds to send money to any cellphone in South Africa using TymeBank’s SendMoney app,” the bank said in a statement.

TymeBank says 300,000 new customers are joining each month and it has a revenue run rate of over $100 million per year.

With the additional capital raised, now totaling over $260 million, TymeBank has ambitious plans to expand its operations in South Africa, the Philippines, and Southeast Asia. The company aims to strengthen its presence in these markets and capitalize on the growing demand for its digital banking services.

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