South African digital bank TymeBank is set to launch in Indonesia by the end of 2024, marking its third Southeast Asian market after its 2022 entry into the Philippines and early 2024 expansion into Vietnam. Instead of seeking a banking license in Indonesia immediately, TymeBank will offer its Merchant Cash Advance product to Small and Medium Enterprises (SMEs), replicating a strategy used in Vietnam.
Coen Jonker, Tyme Group chair, highlighted the potential in Indonesia’s SME lending market, citing a significant profit opportunity. With over 60 million SMEs and limited access to traditional financing, Indonesia provides fertile ground for TymeBank’s merchant lending business. In South Africa, the bank has already disbursed $100 million to over 60,000 small businesses.
Founded in 2018 by Coenraad Jonker and Tjaart van der Walt, TymeBank targets low-income earners and SMEs. Backed by Tencent, British International Investment, and Patrice Motsepe’s Africa Rainbow Capital, the bank has raised $316 million and is pursuing a $150 million Series D funding round, with plans for a New York Stock Exchange listing by 2028.
TymeBank’s foray into Southeast Asia reflects the region’s favorable regulatory environment and vast market potential. Despite reporting a $42 million loss in the Philippines in 2023, its first full year of operations, the bank is optimistic about achieving profitability in South Africa by 2024 and breaking even in the Philippines by 2025.
The bank’s customer base continues to grow rapidly, with projections to reach 10 million customers in South Africa and 5 million in the Philippines by October 2024. According to Jonker, the Philippine market has demonstrated exceptional growth, achieving half of TymeBank’s South African customer base in just two years compared to six years in its home market.
While TymeBank remains focused on Southeast Asia, its leadership has not ruled out future African expansion, describing the move as a matter of “when, not if.”
