South Africa’s TymeBank plans to acquire a local lender to small businesses to help the banking startup backed by South African billionaire Patrice Motsepe accelerate its expansion plans.
The bank controlled by Motsepe’s African Rainbow Capital will acquire Johannesburg-based Retail Capital, it said in a statement on Wednesday, without disclosing the purchase price.
Retail Capital, which started in 2011, has funded more than 43,000 business owners with over R5.5 billion in working capital.
The purchase will help TymeBank, which started as a digital lender to individuals, boost business customers.
The bank has more than 5 million retail clients. The acquisition, which is subject to regulatory approval, will boost TymeBank’s business customers by almost half, according to data provided by the two companies.
“This acquisition will enable TymeBank to expand its offering to entrepreneurs to include working capital finance,” TymeBank Chief Executive Officer, Coen Jonker said in the statement.