Digital banking service TymeBank has announced plans to acquire Retail Capital, a leading fintech funder of South African small and medium enterprises.
According to a statement by African Rainbow Capital Investments, Retail Capital will become a division of the bank and will form the foundation of its expanded business banking offering.
Read the Sens announcement here.
“The proposed transaction will support TymeBank’s offering to its business banking clients. It will also see Retail Capital’s lending expertise being combined with TymeBank’s deposit base and operations to serve a broader customer base,” it noted.
Retail Capital lowers the barriers to funding for SMEs through a three-step online application process. It has provided funding of more than R5.5 billion to more than 43 000 business owners in SA since it launched in 2011, making it the largest SME funder in the sector.
TymeBank currently has over five million individual customers and more than 100 000 business banking customers.
The transaction cost is undisclosed.
Palesa Mofokeng is a Moneyweb intern.