TymeBanka South African digital bank backed by China Tencent Holdings Ltd., uploads 150 million dollars to build scale as it prepares for an initial public offering (IPO).
The digital bank controlled by an African billionaire Patrice MotsepeAfrican Rainbow Capital expects to complete the round by the fourth quarter, to fund expansion plans such as TymeBank’s move to Indonesia by the end of the year.
What they say
“We are currently valued close to $1 billion and are busy raising Series D capital at the unicorn valuation“, CEO Coenraad Jonker said in an interview in Johannesburg.
“We aim to list TymeBank in New York by 2028 and will likely also do a secondary listing on the Johannesburg Stock Exchange for our South African shareholders.”
Zoom out
TymeBank is now one of the fastest growing digital banks in Africa and follows a similar business model to that of Brazil Nu Holdings Ltd.which also counts Tencent as a shareholder, and listed in New York in 2021.
Zoom in
The digital bank started in South Africa in 2019 and now check 10% of primary banking market share in Africa’s most developed economy.
TymeBank has gone head-to-head with established banks in the country, such as Africa’s largest bank Standard Bank Group Ltd., and First National Bank of FirstRand Ltdand is now the third-largest and fastest-growing lender by number of customers, according to Jonker.
What happens next?
Jonker said it plans to focus on expanding its markets in fast-growing Asian countries and already has operations in Philippines and Vietnam.
Jonker wants to reach profitability in the Philippines in the next 18 months and offer a full retail banking proposition in Vietnam by next year, he said.
Source: Bloomberg
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