Patrice Motsepe, African Rainbow Capital founder.

South African founded Tyme Group has secured $77.8 million in a pre-series C capital raise, backed by new international investors.

The group, which owns digital bank – Tyme Bank – announced the capital injection today, saying the fresh funds were raised by Tyme’s existing shareholders, along with investment from two new shareholders – Norrsken22, an Africa-focused tech growth fund, and Blue Earth Capital (Blue Earth), an independent global impact investment firm.

The funds being raised are intended to further operations in South Africa and the Philippines, for future expansion in Southeast Asia, and a partial share buyback, says a company statement.

Tyme has a revenue run rate of over $100 million per annum and the business (across South Africa and the Philippines) is growing at a pace of 300,000 new customers a month.

In South Africa, TymeBank, which launched in February 2019, serves over 7 million customers, with a current acquisition rate of 200,000 customers per month and a 70% 30-day account activity rate.

In the Philippines, GoTyme was launched in October 2022, in partnership with the Gokongwei Group. The digital bank is modelled on South Africa’s TymeBank, with a concept that improves financial access as it offers Filipino consumers ‘quality, affordable and accessible financial service solutions’, says the group.

After this cash raising exercise, African Rainbow Capital (ARC) remains Tyme’s majority shareholder.

Dr Patrice Motsepe, ARC founder and chairman, comments: “We remain excited and committed to further creating value in building a global digital banking portfolio with our fellow shareholders and partners and we welcome the new investors who have participated in this raise.”

Tyme’s new investors are optimistic about the group’s prospects. David Moore, principal of funds and co-investments, BlueEarth, says: “We invested in Tyme Group thanks to our long-standing 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.

“BlueEarth is excited about backing Tyme’s innovative, retail partnership model, which enables affordable access to first-class banking products to all consumers, including those most vulnerable or living in remote locations.”

Natalie Kolbe, managing partner at Norrsken22, adds: "We are delighted to invest in Tyme. The company offers a unique product with huge customer appeal, which has led to fast and sustained growth.

“We have analysed a lot of fintechs from across the continent, and Tyme set itself apart with its impressive growth, its differentiated product, and its unique ability to reach and serve new customer groups. The exceptional management team have already built one of the largest challenger banks in the world, and we are looking forward to being part of the next phase of their journey."

For Coen Jonker, co-founder of Tyme and TymeBank CEO, the work continues with interested investors, with Series C expected to close later in the year.

“We are delighted to welcome Norrsken22 and Blue Earth Capital to the group of high-calibre investors who have bought into Tyme’s growth story, and its mission to democratize financial services,” says Jonker.