Apis Growth Fund I, a private equity fund managed by Apis Partners (Apis), is to sell the whole of its interest in 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 c11.7% 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 ZAR5.5 billion in working capital over the last 10 years, making it the largest SME funder of its kind in the sector.
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.