TymeBank, South Africa’s digital-only bank is all set to expand with its latest funding deal, a credit facility that allows customers to “buy now and pay later” for goods.
The recent funding of R1.6 billion from Philippines and the UK will enable the bank to expand beyond South Africa and strengthen its growth. The funding comes in two tranches- R500 million being already invested in the business and R1.1 billion investment in the next one year.
According to the bank, the investment is one of the largest foreign investments for any South African Fintech company and was made by Apis Growth Fund II and JG Summit Holdings.
Chief Executive Officer of TymeBank, Tauriq Keraan considers the raise to be largely due to the investors noticing the importance of digital banking. Growth in digital banks in Africa is only possible with investors from partners who support the growth, he added.
The credit facility, among other loan solutions, will enable customers with access to South Africa’s shopping Network. The bank is looking forward to expanding its insurance offerings that give customers funeral policy plans without any paperwork.
The digital bank’s majority shareholder is African Rainbow Capital (ARC) that targets under-banked citizens of the country through transparent and nominal bank fees.