TymeBank broadens its horizon in Southeast Asia through the forthcoming debut in Indonesia
South African digital bank TymeBank has secured $316 million in funding and is seeking an additional $150 million in a Series D round, as it focuses its attention on expanding in Southeast Asia and potentially Africa.
The regulatory environment and customer base in the region are seen as favourable for TymeBank's growth. The bank, which was established in 2018, aims to serve low-income earners and Small and Medium Enterprises (SMEs).
TymeBank's operations in Southeast Asia are already showing promising results. In the Philippines, the growth rate has been faster than in South Africa, with the bank achieving half of its total customer base in two years compared to six years in South Africa. By October 2024, TymeBank expects to have 10 million customers in South Africa and 5 million in the Philippines.
In Indonesia, TymeBank is set to launch by the end of 2024, marking its third Southeast Asian market. The country offers a promising market opportunity due to its thriving ecosystem of over 60 million SMEs and restricted access to conventional financing. TymeBank's chair, Coen Jonker, stated that they see a massive opportunity with good profit potential in the small business lending space in Indonesia and the region.
Initially, TymeBank will introduce its lending product, Merchant Cash Advance, targeted at SMEs in Indonesia. This approach mirrors the strategy TymeBank employed in Vietnam.
TymeBank's expansion in Southeast Asia is supported by major investors, including Tencent, British International Investment, and Patrice Motsepe's Africa Rainbow Capital (ARC). In South Africa, TymeBank has already disbursed $100 million to more than 60,000 small enterprises.
Despite its growth, TymeBank reported a loss of 2.47 billion Philippine pesos ($42 million) in its first full year of operations in the Philippines in 2023. The bank's operations in the Philippines are not yet profitable, but it aims to break even by 2025 and achieve full-year profitability in South Africa by 2024.
TymeBank has plans to list on the New York Stock Exchange by 2028, reflecting its ambition to become a significant player in the global digital banking landscape. The bank is also considering further expansion in Africa, with the question being "when" rather than "if" this move will take place.
In conclusion, TymeBank's strategic expansion in Southeast Asia and potential future moves in Africa demonstrate its commitment to serving the underbanked and unbanked populations in these regions. With the support of major investors and a focus on profitable growth, TymeBank is well-positioned to make a significant impact in the digital banking industry.
