TymeBank Raising $150 Million Ahead of IPO

TymeBank, a leading digital bank in South Africa, is raising $150 million in preparation for its initial public offering (IPO).

The company is preparing for an IPO, targeting a New York listing by 2028, with a potential secondary listing on the Johannesburg Stock Exchange for South African shareholders.

The digital bank plans to complete this funding round by the fourth quarter, using the funds to expand into new markets, such as Indonesia, by the end of the year.

Jonker’s comments to Bloomberg follow a recent interview with the Financial Times, where he emphasized TymeBank’s ambition to become South Africa’s fastest-growing bank. “We aim to be in the top three in customer numbers and from a return on equity perspective,” he said. “Initial engagement with investors has encouraged us to consider raising a larger round to accelerate the pursuit of further attractive opportunities in the industry.”

TymeBank initially attracted customers by offering a no-fee debit card and a transactional bank account, addressing the needs of a country where approximately 20% of the population is unbanked or underbanked.

The $150 million funding target nearly doubles the amount raised last year, which was used for expansion in South Africa and the Philippines.

In related news, PYMNTS recently reported on the rise of America’s “banking deserts,” areas with limited access to banks and broadband, making both digital and physical banking challenging. However, efforts to expand broadband access across the U.S. could enhance the use of mobile banking even in areas with few physical branches.

The PYMNTS Intelligence report “The 2024 Credit Union Innovation Readiness Index” indicates that digital and mobile banking are growing in popularity among consumers, especially at credit unions. Ninety percent of top-performing credit unions reported increased member satisfaction with their mobile apps last year, while 83% saw a rise in mobile app downloads.