The fintech startup Retail Capital, which finances South African Small and Micro Enterprises (SMEs), has been targeted for purchase by South African digital bank TymeBank for an unknown sum. The transaction is pending regulatory approval.
SMEs can apply for finance from Retail Capital online in three easy steps. The startup asserts that in the previous ten years, it has given R5.5 billion (about $326 million) in working capital to more than 43,000 business owners.
TymeBank CEO Coen Jonker discussed the transaction and noted that it will allow TymeBank to increase the range of services it provides to business owners to include working capital financing.
“Retail Capital has acquired significant risk management experience over the past decade and through different economic cycles. They have an experienced team in place and their risk models and operational processes have been battle-tested and optimised to a significant degree for small-business funding,” he added.
According to Retail Capital’s CEO Karl Westvig, the fintech firm already supports their SME customers by powering a number of market-leading partners in the acquiring, retail, and payments sectors. Additionally, he stated that TymeBank’s acquisition will further improve this service to their partners’ clients.
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