Tech

TymeBank plans offshore expansion after securing R1 1.6 billion in funding

Digital only bank TymeBank says he is exploring international opportunities after securing R6 billion in funding from investors in the UK and the Philippines.

The financial injection, which the bank says is one of the largest foreign investments a fintech company has secured in South Africa, will be used to expand TymeBank’s range of banking products, grow its loan portfolio locally. and will be channeled towards financing the digital actor’s offshore. expansion opportunities.

New investors in TymeBank are Apis Growth Fund II, a private equity fund managed by Apis Partners, based in London, and JG Summit Holdings, one of the largest investment conglomerates in the Philippines, owned by the Gokongwei family.

Apis is a private equity asset manager supporting growing financial services and infrastructure.

Along with TymeBank’s existing shareholders, which include majority shareholder African Rainbow Capital (ARC), the new investors will make the digital player a leading retail bank in South Africa, according to a statement.

“As the majority shareholder of TymeBank, ARC is delighted to welcome our new co-investors on board,” said Dr. Patrice Motsepe, President of ARC.

“Equally important, Apis and the Gokongwei family are investing in TymeBank at a time of significant uncertainty globally and in South Africa due to the COVID-19 pandemic. The amount invested of 1.6 billion rand is no small feat – both in terms of attracting investment in the South African financial services sector and investing in a nascent part of the sector in our country. . We are looking forward to a long term partnership with Apis and the Gokongwei family. “

Of the total investment of R 6 billion, some R 500 million has already been invested. The balance will be invested over the next 12 to 15 months.

TymeBank says it values ​​the global expertise that Apis and JG Summit will bring as shareholders and Apis as a member of the bank’s board of directors.

The branchless bank, which targets underbanked and underserved South Africans with low and transparent bank fees, says Apis’s experience through its network of payment companies, microfinance banks and platforms fintech will provide valuable experience throughout its expansion phase.

In addition, the parties reached an agreement to launch a digital bank in the Philippines.

Dr Patrice Motsepe, President of African Rainbow Capital.

Dr Patrice Motsepe, President of African Rainbow Capital.

“We see digital banking as the next area of ​​global growth and Asean, and that’s why we’re excited to partner with global investment giants Apis and ARC to participate in this global game by building new successes for South Africa’s leading digital bank TymeBank, ”said Lance Gokongwei, President and CEO of JG Summit.

This investment not only propels the Gokongwei Group to accelerate its foray into the disruptive digital space, it also allows the investment firm to learn more about TymeBank’s experiences which provide a good impetus to consider applying its technology. and its success in the Philippines, adds Gokongwei.

“As a seasoned financial services investor, we are delighted to partner with the TymeBank team, who have built an exceptional business in a competitive market such as South Africa. We are convinced that this investment will accelerate the growth of TymeBank and already impressive integration figures, ”said Matteo Stefanel, Managing Partner at Apis Partners.

The investment is expected to allow TymeBank to strengthen its position locally, in order to better face its digital-only competitors, Discovery Bank and Bank Zero, which is focusing on a “closed deployment” before being publicly launched later this year.

After its official launch in February 2019, TymeBank says it continues to welcome an average of 110,000 new customers per month and hopes to reach the milestone of three million customers next month.

According to the ARC, although the onset of the COVID-19 pandemic initially presented a difficult operating environment for the bank, it then led to increased demand across all income groups of customers in South Africa for options. digital banking – this supports TymeBank’s goal of growing its customer base. to four million by 2022.

The new funding will also be used to enrich its insurance, credit card and other value-added services offerings.

Tauriq Keraan, CEO of TymeBank.

Tauriq Keraan, CEO of TymeBank.

In September, the bank signed a bancassurance agreement with Hollard to offer its clients funeral policy plans without any paperwork.

In July, the bank revealed that it had introduced a fast transaction mode, SendMoney, which allows users to send and receive money through their electronic gadgets.

In December, TymeBank collaborated with global augmented identity company IDEMIA, to provide customers with a secure, more secure and more convenient way to conduct contactless transactions with their bank cards.

Tauriq Keraan, CEO of TymeBank, explains: “The creation of digital banks in South Africa is still in its early stages. Growth in this particular segment of financial services is only possible with investments from partners who understand and support the growth trajectory of digital banks.

“Our new TymeBank shareholders have significant experience in digital financial services in key emerging markets. We certainly look forward to learning from their experience to improve our own offering to South African customers. “

TymeBank plans offshore expansion after securing R1 1.6 billion in funding

Source link TymeBank plans offshore expansion after securing R1 1.6 billion in funding

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