ARC gets AI backing for TymeBank

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ARC gets AI backing for TymeBank

Published Date: 2019-06-11 | Source: Stephen Gunnion | Author: Stephen Gunnion | Comments

ARC gets AI backing for TymeBank

Ethos Private Equity's Artificial Intelligence Fund has invested in the new digital bank.

Ethos Private Equity has made a R200 million investment in African Rainbow Capital's TymeBank as the new digital bank targets two million customers over the next three years.

In an investment update yesterday, ARC said it was engaging with potential strategic partners to help meet TymeBank's growth objectives following its official launch in February. It aims to have 1.3 million active clients in the target period, with a minimum of 200,000 customers using it as their primary bank. It already has more than 400,000 clients and is aiming for half a million by next month.

ARC, the investment holding company started by billionaire Patrice Motsepe, is also an investor in Ethos's Artificial Intelligence (AI) Fund, which has become an 8% shareholder in TymeBank. The fund was launched last October and had a successful first close of R600 million. It's targeting R1 billion in funds for its final close in December. ARC has committed R100 million to the private equity fund.

Among its other investments, ARC said telecoms company rain was making good progress with the roll-out of its strategy of establishing a data network. It aims to launch a 5G network by the end of the year, making SA one of the first countries in the world to have one. Meanwhile, it's lent its support to Alexander Forbes' decision focus on its core employee benefits businesses following a strategic review under new CEO Dawie de Villiers.

It said Kropz, the phosphate mine developer it's invested in, was aiming to start commissioning its Elandsfontein mine and concentration plant towards the end of next year. However, it said the total cost, including additional capital expenditure, operating costs and debt services requirement, was estimated at $20 million more than the amount disclosed when it listed on London's AIM market last November.

The company said it was awaiting the Competition Tribunal's ruling on OLX Group's R1.4 billion acquisition of We Buy Cars from ARC subsidiary Fledge Capital before assessing its position. Last month, the Competition Commission recommended that the deal be prohibited.

ARC's shares rose 6% to R5.09 yesterday.





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