By Milcah Tanimu
TymeBank, the South African digital banking giant, is set to launch in Indonesia by the end of 2024, marking its third foray into Southeast Asia after successful entries into the Philippines in October 2022 and Vietnam in January 2024. With customer deposits totaling R4 billion ($222 million), the bank is expanding its footprint strategically across the region.
In Indonesia, TymeBank will initially forgo obtaining a full banking license, instead opting to introduce its lending product, Merchant Cash Advance, targeting Small and Medium Enterprises (SMEs). This approach mirrors its strategy in Vietnam, focusing on lending to small businesses before expanding its offerings.
Coen Jonker, Tyme Group’s chair, emphasized the significant potential in the Indonesian market, particularly in the SME lending sector. “We see a massive opportunity with good profit potential in the small business lending space in Indonesia and the region,” Jonker told TechCabal. He added that this approach allows the company to establish its brand more swiftly without the immediate need for extensive banking infrastructure.
Founded in 2018 by Coenraad Jonker and Tjaart van der Walt, TymeBank is known for catering to low-income earners and SMEs. The bank has garnered substantial backing from major investors, including Tencent, British International Investment, and Patrice Motsepe’s Africa Rainbow Capital (ARC). To date, TymeBank has raised $316 million and is currently in the process of securing a $150 million Series D funding round, with plans to list on the New York Stock Exchange by 2028.
Indonesia, with over 60 million SMEs and limited access to traditional financing, presents a lucrative opportunity for TymeBank’s merchant lending business. In South Africa, the company has already disbursed $100 million to more than 60,000 small businesses.
Despite a challenging start in the Philippines, where TymeBank reported a loss of 2.47 billion Philippine pesos ($42 million) in 2023, its first full year of operations, the company remains optimistic. Jonker noted that TymeBank aims to break even in the Philippines by 2025 and expects to achieve full-year profitability in South Africa by 2024.
By October 2024, TymeBank anticipates reaching 10 million customers in South Africa and 5 million in the Philippines. “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 remarked.
Looking ahead, Southeast Asia’s favorable regulatory environment and vast market potential continue to draw TymeBank’s focus. While the bank is committed to its Southeast Asian expansion, Jonker hinted at future African expansion, suggesting it is a matter of “when and not if.”
