South Africa’s TymeBank buys retail capital
South Africa-based digital bank TymeBank has a proposed acquisition for Retail Capital, which will help it grow its business banking services, it said in a press release.
Retail Capital’s services provide financing to smaller businesses in the South African area.
The acquisition is subject to regulatory approval and will result in Retail Capital becoming a division of TymeBank.
It would see that Retail Capital’s financing work, combined with TymeBank’s deposit base and operations, would contribute to a larger overall customer base.
The release notes that the companies can offer an “evolving” range of digital solutions that make doing business easier, with TymeBank offering a transaction account boasting various benefits, and Retail Capital offering ways for smaller businesses to get funding more easily.
“This acquisition will enable TymeBank to expand its offering to entrepreneurs to include working capital financing. Retail Capital has acquired significant risk management experience over the past decade and through various economic cycles. They have an experienced team in place and their risk models and operational processes have has been battle-tested and significantly optimized for small business financing. Together, we look forward to providing access to innovative solutions to ensure business owners can drive growth, drive job creation and contribute to the wider economy,” says TymeBank CEO Coen Jonker.
Parent company Tyme will have raised $110 million in a series B round in 2021, PYMNTS wrote.
Read more: Tyme raises $110m to grow digital bank for underserved in South Africa, Asia
Tyme is headquartered in Singapore. The point of the funding was to add to its digital bank for the underserved in Asia and Southeast Africa.
The company at the time was looking into applying for a digital banking license from the Central Bank of the Philippines.
TymeBank was rolled out in February 2019, and now has over 2 million customers using it.
The aim of the bank is to work with disadvantaged and underbanked customers and provide them with a platform “that stimulates financial participation and facilitates wider financial inclusion.”
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