South Africa-based digital bank TymeBank has a proposed acquisition lined up for Retail Capital, which will help it boost its business banking services, the press release says.
Retail Capital’s services provide funding for smaller businesses in the South Africa area.
The acquisition is subject to regulatory approval and would see Retail Capital becoming a division of TymeBank.
It would see Retail Capital’s funding work combining with TymeBank’s deposit base and operations, adding to a bigger overall customer base.
The release notes that the companies can offer an “evolving” array of digital solutions making it easier to do business, with TymeBank offering a transactional business account that boasts various benefits, and Retail Capital offering ways for the smaller businesses to get funding more easily.
“This acquisition will enable TymeBank to expand its offering to entrepreneurs to include working capital finance. Retail Capital has acquired significant risk management experience over the past decade and through different economic cycles. They have an experienced team in place, and their risk models and operational processes have been battle-tested and optimized to a significant degree for small-business funding. Together, we look forward to providing access to innovative solutions to ensure business owners can fuel their growth, drive job creation and contribute to the wider economy,” said TymeBank CEO Coen Jonker.
Parent company Tyme reportedly raised $110 million in a Series B round in 2021, PYMNTS wrote.
Read more: Tyme Raises $110 Million To Grow Digital Bank For Underserved In South Africa, Asia
Tyme is headquartered in Singapore. The point of the funding was to add to its digital bank for the underserved in Asia and Southeast Africa.
The company at that time was looking into applying for a digital bank license from the Central Bank of the Philippines.
TymeBank was rolled out in February of 2019, and now has over 2 million customers using it.
The goal of the bank is to work with underserved and underbanked customers, giving them a platform “that stimulates economic participation and facilitates broader financial inclusion.”
For all PYMNTS B2B and EMEA coverage, subscribe to the daily B2B and EMEA Newsletters.