MICROCAPITAL BRIEF: Apis Partners, JG Summit Commit $108m for Minority Equity Stakes in TymeBank to Expand Microinsurance, Payment Card Services to Individuals, SMEs in South Africa

TymeBank, the South African unit of Singapore-based TymeGlobal, has secured commitments totaling ZAR 1.6 billion (USD 108 million) from the Filipino conglomerate JG Summit Holdings and UK-based asset manager Apis Partners. Although the exact terms of the deal have not been released, TymeBank has so far received ZAR 500 million (USD 33 million), with the balance to be disbursed during the next 15 months, pending regulatory approval. The funding from Apis was channeled through its investment vehicle Apis Growth Fund II.

TymeBank, which serves customers exclusively through banking modes such as kiosks and a mobile app rather than traditional branches, plans to use the new funding to “enhance its propositions in insurance, credit cards, and other value-added services to customers.” Its 2.7 million business and personal account holders have access to savings accounts that pay up to 8 percent annual interest as well as money transfers, debit cards, interest-rate tracking tools and a shopper-rewards program. The bank is planning to introduce small business loans in the future.

TymeGlobal is a digital banking group active in Singapore, South Africa and Vietnam. Its institutional shareholders are African Rainbow Capital, which is traded on the Johannesburg Stock Exchange; Hong-Kong based PLC Venture Capital, and South Africa’s Ethos Private Equity.

Apis Partners is a private equity asset manager based in the city of London that is “focused on driving financial services with the help of innovation and technology,” as well as promoting the use of model environmental, social and governance (ESG) principles. Launched in 2019, the Apis Growth Fund II is focused on “the development of financial institutions across major global investor markets in the US, Europe, Africa, Middle East and Asia.” As of 2021, Apis has raised USD 912 million for three funds.

Launched in 1957, JG Summit’s holdings primarily serve the middle class in Southeast Asia and Australia. Its largest subsidiaries include the airline Cebu Pacific and Universal Robina Corporation, a snack-food and beverage company. For the three months ending September 2020, JG Summit reported after tax profit of USD 9.4 million on total assets of USD 20.2 billion.

By Tejas Gumudavelly, Research Associate

Sources and Additional Resources

Engineering News press release
https://www.engineeringnews.co.za/article/tymebank-receives-r16bn-investment-to-expand-products-grow-lending-portfolio-2021-02-23

TymeBank homepage
https://www.tymebank.co.za/

TymeGlobal homepage
https://www.tyme.com/

Apis Partners homepage
https://apis.pe/

Apis Partners financials
https://www.crunchbase.com/organization/apis-partners

JG Summit homepage
https://www.jgsummit.com.ph/

Do you know that MicroCapital publishes the MicroCapital Monitor newspaper each month? Find out more at https://www.microcapital.org/products-page/.