TymeBank completed its Retail Capital acquisition for R1.5 billion after receiving all the necessary regulatory approvals.
TymeBank is majority owned by Patrice Motsepe’s African Rainbow Capital and has been a strong performer for the group.
Retail Capital is a fintech company that provides funding to small and medium-sized businesses.
In the last ten years, Retail Capital has provided 50,000 business owners in South Africa with R7 billion in working capital.
Retail Capital will become a new division of TymeBank by the end of December 2022 and will house TymeBank’s business banking offering.
Retail Capital CEO Karl Westvig will join Tyme Group’s executive committee and be responsible for TymeBank’s business banking and lending offerings.
TymeBank CEO Coen Jonker said it is their first acquisition and the beginning of a new era for TymeBank as it branches out into working capital funding for small businesses.
“TymeBank Business Banking is now strengthened, and we look forward to making business banking and access to capital more affordable to small business owners and entrepreneurs,” he said.
There are no immediate plans to rebrand Retail Capital, which will continue to operate as usual.
“We want to maintain commercial momentum, so we will focus on making the integration as seamless as possible,” he said.
TymeBank’s Business Banking division already has over 120,000 customers with transactional business accounts.
Business customers also have access to TymePOS, a mobile point-of-sale app that turns an NFC-enabled cellphone into a tap-and-go payment device.
“There is an incredible synergy between Retail Capital and TymeBank, starting with the ethos to provide affordable banking to consumers and businesses,” Westvig said.