TymeBank acquires fintech company Retail Capital
Challenger South African digital bank TymeBank announced on Wednesday that it is acquiring Retail Capital, a fintech company that offers financing to small and medium-sized businesses.
The acquisition, which is subject to regulatory approvals, will see Retail Capital become a division of TymeBank and “the foundation” of the bank’s expanded business banking offering, it said. TymeBank is majority owned by Patrice Motsepe’s African Rainbow Capital.
The value of the agreement was not disclosed. “Retail Capital’s financing expertise and TymeBank’s deposit base and operations [will be] combined to serve a wider customer base… TymeBank believes that being able to channel finance effectively to business owners in South Africa is critical to the expansion of the historically underserved small business sector.
“This acquisition will allow TymeBank to expand its offering to entrepreneurs to include working capital financing. Retail Capital has acquired significant risk management experience over the past decade and through various economic cycles. They have an experienced team in place and their risk models and operational processes have been battle-tested and significantly optimized for small business financing, the bank said in a statement.
TymeBank’s corporate banking offering already has more than 100,000 customers. The service includes a transaction business account with no monthly bank fees, free debit card and online purchase transactions and free bulk payments.
Retail Capital, led by CEO Karl Westvig, provides funding to small and medium-sized businesses through a simple, three-step online application process. Over the past 10 years, it has provided more than 43,000 business owners with R5.5 billion in working capital.
‘Scale the offer’
“Through this acquisition of TymeBank, we will be able to scale our offering, giving SMEs the opportunity to expand through financing that works on their terms,” Westvig said in the statement.
Tyme Group, through its multi-country digital banking presence, will also enable Retail Capital’s international expansion into other markets.
On Wednesday, TymeBank also launched TymePOS, a mobile point-of-sale app for Android that turns an NFC-enabled mobile phone into a tap-and-go payment device that offers next-day settlement. – © 2022 NewsCentral Media
