26 September 2023
Apis Growth Fund I announces the sale of its interest in Retail Capital
London, 3 August, 2022: Apis Growth Fund I (the “Fund”), a private equity fund managed by Apis Partners LLP (“Apis”), has entered into an agreement to sell the whole of its interest in leading South African SME Financing company Retail Capital Proprietary Holdings (“Retail Capital”) to TymeBank Holdings Limited (“TymeBank”).
The Fund invested in Retail Capital in October 2018, acquiring a c. 11.7% shareholding in the company. Over the investment, Retail Capital has lowered the barriers to funding for SMEs through an easy, three-step online application process. This has led to Retail Capital providing more than 43 000 business owners in South Africa with over R5.5 billion in working capital over the last 10 years, making it the largest SME funder of its kind in the sector. More recently, Retail Capital has further established itself as a pivotal partner to SMEs through its embedded lending solution, which provides business owners with instant access to funding. Apis is proud to have partnered with Retail Capital in helping simplify and accelerate loans to small businesses across South Africa.
The acquisition by TymeBank is set to bolster its business banking offering – which currently has more than 100,000 customers – with a series of new initiatives. Retail Capital’s funding expertise and TymeBank’s deposit base and operations combined to serve a broader customer base. The merged entity will accelerate Retail Capital’s ability to channel funding efficiently to small business owners in South Africa. The Retail Capital management team will continue to play a critical role in the growth of the combined business post-transaction.
The acquisition, subject to regulatory approvals, would see Retail Capital become a division of TymeBank and the foundation of the bank’s expanded business banking offering.
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About Apis Partners LLP
The Apis Group (“Apis”) is an ESGI-native global private equity and venture capital asset manager that supports growth-stage financial services and financial infrastructure businesses by providing them with catalytic growth equity capital. Collectively Apis, through its team of approximately 40 professionals with deep industry expertise, manages or advises on total committed capital from investors (including drawn and invested capital) of US$1.2 billion. Including its headquarters in London, Apis has representation in seven countries across Europe, North, East and West Africa, and South and Southeast Asia.
About Retail Capital
Since its inception in 2011, Retail Capital has developed a robust risk decisioning process for small business funding products, launched a successful set of fintech solution, and developed the underlying technology for embedded funding solutions. They have also built an experienced executive and operational team and are currently profitable and capital generative. Retail Capital has a high-touch relationship model as well as a low-touch POS-based embedded funding solution. Over the past decade, Retail Capital has funded more than 43 000 business owners with over R5.5bn.
TymeBank is one of the world’s fastest-growing digital banks, with more than 5 million customers since launching in February 2019. The bank is founded on simplicity, transparency and affordability and is designed to make digital banking accessible and affordable to all South Africans across the economic spectrum. TymeBank is majority owned by Dr Patrice Motsepe’s African Rainbow Capital (‘ARC’). Recent investors include Tencent, an internet and technology company based in China and British British International Investment PLC, the UK’s development finance institution and impact investor. Others include UK-based Apis Growth Fund II (‘Apis’), a fintech private equity fund based in the UK, JG Summit Holdings (JG Summit), a Philippines based conglomerate owned by the Gokongwei family, African Fig Tree (AFT), a ring-fenced vehicle established by the founders along with key individuals, and the Ethos AI Fund. For more information, please visit www.tymebank.co.za