TymeBank, the South African digital bank widely known for its commitment towards financial inclusivity is set to launch in Indonesia by the end of 2024. It is the bank’s third foray into the Southeast Asian market, after launching in the Philippines in October 2022 and Vietnam in January 2024.
Backed by Chinese tech giant Tencent, the UK’s British International Investment, and Patrice Motsepe’s Africa Rainbow Capital (ARC), the digital bank has raised $316 million and currently boasts of R4 billion ($222 million) in customer deposits. As of now, it is in the midst of raising a $150 million Series D round with aims to list on the New York Stock Exchange by 2028.
Founded in 2018 by Coenraad Jonker and Tjaart van der Walt, TymeBank focuses on low-income earners and SMEs. It has to date disbursed $100 million to over 60,000 small businesses in South Africa. And it claims to have added 150,000 customers monthly, targeting the underprivileged and economically marginalized groups in society through easily accessible, affordable, and quality banking services.
With over 60 million SMEs and limited access to traditional financing, Indonesia presents a market opportunity for TymeBank to grow its merchant lending business. In Indonesia, the company will not immediately pursue a full banking license. It will instead focus on offering its lending product, Merchant Cash Advance, to Small and Medium Enterprises (SMEs). A strategy similar to what was previously utilized in Vietnam.
“We see a massive opportunity with good profit potential in the small business lending space in Indonesia and the region,” Tyme Group chair Coen Jonker told TechCabal. “We can also build our brand faster because it takes a lot more time and money to get a full banking license and infrastructure up and running.”
This is a daring move considering the loss of 2.47 billion Philippine pesos ($42 million) recorded by the company in 2023, during its first full year of operations in the Philippines. However, according to Jonker, the company aims to break even in 2025 and achieve full-year profitability in South Africa in 2024.
Read also: TymeBank seeks $150 million to join the unicorn club.
Despite this setback, TymeBank expects to reach 10 million customers in South Africa and 5 million in the Philippines by October 2024, proving its potential. “In the Philippines, we have achieved half in two years of the total customer base that we achieved in South Africa over six years, so that is an amazing growth story,” Jonker said.
TymeBank focuses on the Southeast Asian market, attracted by its favorable regulatory landscape and vast market potential. Looking ahead, the bank will not dismiss the possibility of an African expansion, with Jonker saying the move is a question of “when and not if.”
It remains uncertain if TymeBank’s cautious strategy in Indonesia will succeed, but with strong financial backing and an expanding customer base, the bank seems well-positioned to maintain its upward trajectory.
