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South African digital bank TymeBank has reported a rise in its deposits 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, shared the figures in its financial report for the six months ending December 31, 2024. ARC holds a 57.7 percent stake in TymeBank, which is recognized as South Africa’s first fully digital bank.
The increase in deposits from R6.3bn ($347.11m) in June 2024 signals the continued expansion of the digital lender, which had reached 10.7m customers by the end of December. ARC highlighted the bank’s consistent monthly growth in income-generating transactions and a high net promoter score, suggesting strong customer satisfaction.
TymeBank’s parent company, Tyme Group, which also includes the international arm Tyme Global, saw a net fair value gain of R27m ($1.49m) during the reporting period. This occurred despite a decrease in the overall value of Tyme Group, which ARC attributed to a reduction in the valuation of Sanlam’s investment from R3.92bn ($215.98m) to R3.45bn ($190.08m).
After a successful $250m Series D funding round in December 2024, which increased Tyme Group’s valuation to $1.5bn and granted it unicorn status, the reporting structure for TymeBank and Tyme Global was separated. The round, led by Latin American financial technology giant Nu Holdings, the parent company of Nubank, marked a major milestone.
ARC noted that it proportionally increased its shareholding in TymeBank during the capital raise to better align shareholder interests. However, it also acknowledged a “conservative adjustment” of TymeBank’s valuation downward by R324 million ($17.85m) to reflect the pricing of the Series D round.
Despite this adjustment, ARC remains positive about TymeBank’s future, emphasizing that the bank has shown “consistently higher growth in customer onboarding compared to international peers.” The bank is making substantial investments in long-term strategic initiatives such as advanced data analytics and artificial intelligence to improve the customer experience and develop innovative products.
While these investments may place short-term pressure on profitability, ARC believes they are crucial for strengthening TymeBank’s competitive edge and ensuring sustained long-term growth. The bank has also formed strategic partnerships with key retail and fintech players like TFG, Boxer, Pick n Pay, and Kazang.
Looking ahead, TymeBank plans to grow its lending portfolio to further enhance its revenue potential. Net advances increased from R1.9bn ($104.68m) to R2.3bn ($126.72m). The bank plans to introduce new secured lending products, such as vehicle finance, leveraging its existing infrastructure and customer base.
The ongoing growth and strategic investments reflect a positive outlook for TymeBank as it strengthens its position in the South African banking sector.
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