TymeBank Achieves Historic Profitability in South Africa Almost Five Years After Launch

TymeBank, a South African fintech, recently made headlines by achieving its first-ever profit in December 2023.

As the first digital bank in South Africa and on the continent to break even, this success follows a noteworthy turnaround from a loss of approximately $45 million just six months earlier.

Founded in 2019, TymeBank focuses on providing easily accessible, affordable, and quality banking services to underprivileged and economically marginalised groups.

With an impressive track record of adding 150,000 customers monthly, the neobank’s profitability marks a historic moment in South African banking.

Patrice Motsepe, Founder and Chairman of African Rainbow Capital (ARC), praised TymeBank’s achievement, attributing it to over four years of dedicated work, strategic investments, and a steadfast commitment to offering quality banking services to all South Africans.

ARC owns a controlling stake of 57.7% in TymeBank, with other investors including African Fig Tree, JG Summit Holdings, Chinese International Investment, Apis Growth Fund II, and the Ethos AI Fund.

Before reaching profitability, TymeBank faced cumulative losses of approximately $347 million, as disclosed in ARC’s previous financial reports.

However, with an annual revenue run rate exceeding $95 million, TymeBank now stands among the minority of digital banks globally that are profitable, showcasing its rapid growth.

TymeBank attributes its success to a unique hybrid approach, combining digital channels with walk-in kiosks through strategic partnerships with retailers like Pick n Pay, Boxer, and TFG.

The company also acknowledges the unwavering confidence of its shareholders, a factor that played a crucial role in its journey to profitability.

In May 2023, a pre-Series C funding round led by Norrsken22 and Blue Earth Capital raised $77.8 million for TymeBank. Notably, competitors Bank Zero and Discovery Bank are yet to achieve profitability.

CEO Coenraad Jonker emphasised the significance of TymeBank’s accomplishment, highlighting that fewer than half of the top 100 global digital banks are profitable. He views this success as a South African achievement to be celebrated by the neobank’s 8.5 million customers.