South Africa’s TymeBank to acquire SME funding fintech Retail Capital
South African digital bank TymeBank is set to acquire Retail Capital, a fintech that provides funding to small and medium-sized enterprises (SMEs), for an undisclosed sum.
The deal would see Retail Capital become a division within TymeBank, forming the foundation of an expanded business banking offering which already has 100,000 customers.
TymeBank says the ability to channel funding efficiently to business owners in South Africa is “critical” to the expansion of the historically underserved small business sector.
CEO Coen Jonker says the acquisition will allow the firm “to expand its offering to entrepreneurs to include working capital finance”.
The companies will combine to serve a broader customer base, the bank says, with TymeBank’s deposit base providing a flexible source of low-cost capital for Retail Capital.
Retail Capital CEO Karl Westvig adds the deal will enable the firm “to scale our offering, giving SMEs the opportunity to expand through funding that works on their terms”.