Digital bank Tyme wins funding for SE Asia, Africa expansion
Tyme Group, an emerging markets-focused digital banking group with operations in the Philippines and South Africa, has raised USD 77.8m in pre-Series C funding. A portion of the proceeds will be used for expansion into other markets in Southeast Asia.
Norrsken22, an Africa-focused tech growth fund, and Blue Earth Capital, a global impact investment firm, came into the round as new investors. Unnamed existing backers also made contributions. The Series C round is expected to close before year-end.
Tyme closed its Series B on USD 180m in December 2021 with a USD 70m commitment from China's Tencent Holdings and UK development finance institution British International Investment. The remaining USD 110m was provided earlier in the year by emerging markets fintech investor Apis Partners and JG Summit Holdings, which is controlled by Filipino conglomerate Gokongwei Group.
African Rainbow Capital (ARC) remains Tyme's majority shareholder. A subsidiary of Ubuntu-Botho Investments, it is a fully black-owned and controlled company that focuses on opportunities in South Africa and African financial services and other diversified investments. Ethos, a South Africa-based private equity firm, and Hong Kong's EFM Asset Management are also identified as investors.
Tyme is onboarding 300,000 new customers every month, while its annual revenue run rate exceeds USD 100m. The goal is to build mass-market digital banks that meet the needs of underserved and underbanked populations, taking a high tech-human touch approach that includes financial education.
The South Africa operation launched in February 2019 and has served over 7m customers. It registers 25m transactions every month. Last year, it acquired Retail Capital, a tech-enabled merchant lending platform that has already issued ZAR 5.5bn (USD 286m) in working capital to 50,000 business owners.
GoTyme was established in the Philippines towards the end of last year in partnership with Gokongwei. It is modelled on TymeBank. The new funding will be used to strengthen Tyme's position in South Africa and the Philippines and to explore expansion in Southeast Asia. The company is also planning a partial share buyback at a higher valuation than the previous round. No details were given as to the sellers.
Tyme's global headquarters is in Singapore while the main technology development hub is in Vietnam.
"We invested in Tyme Group thanks to our longstanding partnership with Apis Partners who look to build on their mission to generate attractive commercial returns alongside key priorities of reduced inequalities and greater financial inclusion," said David Moore, a principal for funds and co-investments at BlueEarth, in a statement.
"BlueEarth is excited about backing Tyme's innovative retail partnership model, which enables affordable access to first-class banking products for all consumers, including those most vulnerable or living in remote locations."
More on Southeast Asia
Latest News
Asian GPs slow implementation of ESG policies - survey
Asia-based private equity firms are assigning more dedicated resources to environment, social, and governance (ESG) programmes, but policy changes have slowed in the past 12 months, in part due to concerns raised internally and by LPs, according to a...
Singapore fintech start-up LXA gets $10m seed round
New Enterprise Associates (NEA) has led a USD 10m seed round for Singapore’s LXA, a financial technology start-up launched by a former Asia senior executive at The Blackstone Group.
India's InCred announces $60m round, claims unicorn status
Indian non-bank lender InCred Financial Services said it has received INR 5bn (USD 60m) at a valuation of at least USD 1bn from unnamed investors including “a global private equity fund.”
Insight leads $50m round for Australia's Roller
Insight Partners has led a USD 50m round for Australia’s Roller, a venue management software provider specializing in family fun parks.