TymeBank is crushing it – but the international business is beating South Africa

After TymeBank reached profitability in South Africa, the Tyme Group’s Asian business is expected to break even in 2025—with growth more robust than seen locally.

According to the results of the majority owner, African Rainbow Capital Investment (ARC), for the year ending 30 June 2024, South African-based TymeBank achieved break-even in December 2023.

Arc said that sustained profitability is expected in the coming months, and it will generate fair value gains of R1,181 million.

TymeBank also saw its customer base increase by 11.8% to 9.5 million customers and increased activity levels per customer.

Tyme Global grew its customer base to 3.6 million within 18 months of launching GOtyme in the Philippines.

ARC added that there was a successful integration of Retail Capital into TymeBank and GOtyme in the
Philippines following a R1.5 billion acquisition in December 2022.

The group also invested an additional R169 million into the Tyme Group.

“TymeBank is a leading digital bank with the largest cash-in and cash-out network in South Africa, thanks to its extensive retail partnership network with Pick n Pay, Boxer, and The Foschini Group (TFG),” said ARC.

“Deposits have grown by 59% to R6.5 billion, and merchant credit advances have risen to R1.8 billion.”

“The operational leverage provided by technology is clear – net operating income tripled year-on-year while costs increased by 10%.”

When it comes to Singapore-based Tyme Global, the model’s growth trajectory is strong, with rates exceeding those of South Africa and deposits growing faster than anticipated.

GoTyme Bank also acquired Savii, a payroll lender in the Philippines, to leverage the growing deposit base.

The international business is expected to reach profitability in Q4 of 2025.

“In Vietnam, the third country in the expansion plan, the merchant cash advance product is being piloted as the company progresses through the contracting stages with in-country partners,” said ARC.

ARC Fund agreed to sell its shares in Tyme Group to ARC Financial Services Holdings (FSH), and as a result, the ARC Fund received R1.3 billion in cash.

ARC FSH paid R136 million as part of its second tranche of the Tyme Group Series C+ Capital raise at the end of July 2024.

Notably, Sanlam’s Life unit also plans to acquire a stake in ARC FSH in a deal worth R3.9 billion ($218 million).

Billionaire Patrice Motsepe is the founder of ARC and the deputy chairman of Sanlam.

Sanlam will pay R2.4 billion in cash and swap its 25% (valued at R1.492 billion) shareholding in African Rainbow Capital Financial Services Investments for an equivalent value of shares in the investment holding company.

Other investments and financials

ARC is also an investor in several other notable companies.

Telecommunications company Rain generated an EBITDA of R2.5 billion and saw a fair value gain of R598 million.

Linebroker has also become one of the largest transport businesses in the country. Despite not owning a single truck, it still has an ecosystem of 25,000 trucks. The company also signed two international clients, which will probably double the value of its business in the next year.

ARC noted Alexforbes, Capital Legacy and its agricultural portfolio, which exhibited high growth and profitability.

In terms of financials, the group’s intrinsic investment value in the ARC fund increased by 21.5% from R15,328 million at 30 June 2023 to R18,616 million at 30 June 2024.

The IFRS Net Asset Value (NAV) per share also jumped by 7.9% from R11.44 on 30 June 2023 to R12.34 at 30 June 2024. The lower increase in the NAV per share was due to the rise in the number of shares through a right issue and performance participation.

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