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TymeBank, a South African digital bank backed by China’s Tencent Holdings, is raising $150 million (R2.8 billion) to enhance its growth as it gears up for an initial public offering (IPO), according to co-founder and CEO Coenraad Jonker. The bank is currently valued at close to $1 billion and is in the midst of its Series D funding round.
Jonker highlighted the fundraising effort to build scale and lead TymeBank as Africa’s fastest-growing digital bank. The Series D round brings the startup’s valuation near the $1 billion mark, making it a unicorn in the fintech sector.
TymeBank CEO Coenraad Jonker revealed the news in an interview with Bloomberg. “Our target is to list TymeBank in New York by 2028, and we will most likely also do a secondary listing on the Johannesburg Stock Exchange for our South African shareholders,” Jonker said. The bank plans to conclude the funding round by the fourth quarter, using the capital to support expansion into markets like Indonesia by the end of the year.
TymeBank, controlled by African billionaire Patrice Motsepe’s African Rainbow Capital, is strategizing to become one of the top three banks in South Africa in terms of customer numbers and return on equity. Jonker mentioned that initial engagement with investors has been positive, encouraging the bank to consider raising a larger round to accelerate its growth and seize further opportunities in the industry.
Currently operating in Vietnam and the Philippines, TymeBank expects to reach profitability in these markets within the next 18 months, according to Jonker. The bank’s growth strategy is driven by its successful entry into markets with an unbanked or underbanked population.
TymeBank began its journey in South Africa in 2019, offering a debit card with no fees and a transactional bank account. The bank now controls 10% of the primary bank market share in South Africa, making it the third-largest and fastest-growing lender by customer numbers.
The $150 million funding target is nearly double the amount raised last year to support its expansion in South Africa and the Philippines. It has highlighted the bank’s rapid growth and investor confidence.
As TymeBank continues to grow, its focus remains on expanding into fast-growing Asian markets. The bank aims to provide a complete retail banking proposition in Vietnam by next year and reach profitability in the Philippines soon after.
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