TymeBank, the South African digital banking upstart known for its innovative approach to financial inclusion, is preparing to make its foray into Indonesia by the close of 2024, TechCabal is the first to report. With R4 billion (approximately $222 million) in customer deposits, TymeBank’s move into Indonesia marks its third strategic entry into Southeast Asia, following launches in the Philippines in October 2022 and Vietnam in January 2024. But unlike in its home market, where it holds a full banking license, TymeBank is taking a more measured approach in Indonesia. The company will initially forego the pursuit of a banking license, instead focusing on offering its Merchant Cash Advance product to the country’s vast network of Small and Medium Enterprises (SMEs). It’s a strategy that echoes its rollout in Vietnam, where the bank similarly delayed a full-fledged banking operation. “We see a massive opportunity with good profit potential in the small business lending space in Indonesia and the region,” said Coen Jonker, chairman of Tyme Group, in an interview with 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.” Founded in 2018 by Coenraad Jonker and Tjaart van der Walt, TymeBank has carved out a niche in serving low-income earners and SMEs—demographics often overlooked by traditional banks. The bank's model has garnered the attention of major backers, including Chinese tech giant Tencent, the UK’s British International Investment, and South African billionaire Patrice Motsepe’s Africa Rainbow Capital (ARC). To date, TymeBank has raised $316 million and is in the midst of a $150 million Series D round, with plans to go public on the New York Stock Exchange by 2028. Indonesia, with its 60 million SMEs and a significant gap in access to traditional financing, represents a fertile ground for TymeBank’s merchant lending ambitions. The bank has already seen success in its home market, disbursing $100 million to over 60,000 small businesses in South Africa. Yet, Southeast Asia presents its own set of challenges. TymeBank’s operations in the Philippines recorded a loss of 2.47 billion Philippine pesos (about $42 million) in 2023, its first full year of operations. Still, Jonker remains optimistic, projecting that the company will break even in 2025 and achieve full-year profitability in South Africa by 2024. Despite the setbacks, Jonker points to the bank’s rapid growth in the Philippines as a sign of its potential. TymeBank is on track to reach 10 million customers in South Africa and 5 million in the Philippines by October 2024. “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 noted. As TymeBank sets its sights on further expansion in Southeast Asia, it is not ruling out future moves closer to home. Jonker hinted that an African expansion is on the horizon, describing it as a question of “when and not if.” In the meantime, the bank is focused on tapping into Southeast Asia’s fertile market, where a combination of a friendly regulatory environment and an expansive market potential make it an attractive frontier. Whether TymeBank’s cautious approach in Indonesia will pay off remains to be seen, but with deep-pocketed investors and a growing customer base, the bank appears well-positioned to continue its upward trajectory.
Play audio
No comments