Tycoon Motsepe’s startup bank to buy lender to small businesses

‘This acquisition will enable TymeBank to expand its offering to entrepreneurs to include working capital finance,’ TymeBank CEO, Coen Jonker said.
Patrice Motsepe. Image: Bloomberg

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 ($329 million) 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.

© 2022 Bloomberg

COMMENTS   0

You must be signed in and an Insider Gold subscriber to comment.

SUBSCRIBE NOW SIGN IN

LATEST CURRENCIES  

USD / ZAR
GBP / ZAR
EUR / ZAR
BTC / USD

Subscribe to our mailing list

* indicates required
Moneyweb newsletters

Instrument Details  

You do not have any portfolios, please create one here.
You do not have an alert portfolio, please create one here.
INSIDER SUBSCRIPTION APP VIDEOS RADIO / LISTEN LIVE SHOP OFFERS WEBINARS NEWSLETTERS TRENDING

Follow us:

Search Articles:
Click a Company: