South African digital bank TymeBank has seen its deposits climb to nearly R7bn ($385m) just three months after achieving unicorn status, according to interim financial results released by its majority shareholder, African Rainbow Capital (ARC).
The Johannesburg-listed investment firm, controlled by businessman Patrice Motsepe, disclosed the figures in its financial report for the six months ending December 31, 2024. ARC holds a 57.7 per cent stake in TymeBank, which positions itself as South Africa’s first fully digital bank.
The increase in deposits from R6.3bn ($347.11m) in June 2024 reflects the continued growth of the digital lender, which reached a milestone of 10.7m customers by the end of December. ARC highlighted the bank’s consistent monthly growth in income-generating transactions and its high net promoter score, indicating strong customer satisfaction.
TymeBank’s parent company, Tyme Group, which also includes its international arm Tyme Global, achieved a net fair value gain of R27m ($1.49m) during the reporting period. This comes despite a reduction in the combined value of Tyme Group, which ARC attributed to a decrease in the valuation of Sanlam’s investment from R3.92bn ($215.98m) to R3.45bn ($190.08m).
The reporting structure for TymeBank and Tyme Global has been separated following a successful $250m Series D funding round in December 2024, which propelled Tyme Group to a $1.5bn valuation, granting it coveted unicorn status. The funding round was led by Latin American financial technology giant Nu Holdings, the parent company of Nubank.
ARC noted that it proportionally increased its shareholding in TymeBank during the capital raise to better align shareholder interests. However, it also acknowledged that TymeBank’s valuation was “conservatively adjusted downward by R324 million ($17.85m)” to reflect the pricing of the Series D round.
Despite this adjustment, ARC remains bullish on TymeBank’s prospects, stating that it has shown “consistently higher growth in customer onboarding compared to international peers.” The bank is actively investing in long-term strategic initiatives, including advanced data analytics and artificial intelligence, to enhance customer experience and develop innovative products.
While these investments may exert short-term pressure on profitability, ARC believes they are crucial for strengthening TymeBank’s competitive position and ensuring sustained long-term growth. The bank has also forged strategic partnerships with major retail and fintech players such as TFG, Boxer, Pick n Pay, and Kazang.
Looking ahead, TymeBank aims to expand its lending portfolio to further boost its revenue generation capabilities. Net advances increased from R1.9 billion ($104.68m) to R2.3 billion ($126.72m). The bank plans to introduce new secured lending products, including vehicle finance, leveraging its existing infrastructure and customer base.
The continued growth and strategic investments signal a positive outlook for TymeBank as it solidifies its position in the South African banking landscape.