Through the years, JG Summit and its various business units have taken great pride in providing their customers with better choices, manifested in a number of ways—whether through better prices, a better selection, better service, or better quality.
This way of thinking carries over in choosing where to invest. Taking a deliberate and disciplined approach in growing its portfolio, the conglomerate strives to find or create opportunities to make life better. One of the ways JG Summit believes it can make a difference is by advocating the cause of financial inclusion, not only in the Philippines but all over the world.
As part of this thrust, JG Summit’s venture capital firm, JG Digital Equity Ventures, recently participated in a round of funding for Tyme, one of the leading digital banking networks for emerging markets. The capital-raising exercise secured US$110 million (approximately PHP5.348 billion) in new funding, which will be used to grow TymeBank in South Africa and expand Tyme’s reach across the ASEAN region.
This is said to be the one of the largest foreign investments any fintech company has secured in South Africa, affirming the dynamic growth of its local banking sector. Since its launch in February 2019, TymeBank in South Africa has attracted 2.8 million customers to its digital banking platform.
Apart from JGDEV, which invested US$5 million in the deal, other primary investors in TymeBank include Apis Growth Fund II, a private equity fund managed by U.K.-based Apis Partners LLP; and majority owner African Rainbow Capital, an investment holdings company founded by the South African billionaire Patrice Motsepe.
Having Tyme in its investment portfolio, JGDEV brings to the JGS ecosystem a deeper understanding of digital banking in developing economies such as South Africa, with the aim of replicating it in the emerging markets of the ASEAN region, such as the Philippines. Through this venture, JGS Summit aims to maximize Tyme’s innovation and digital expertise to support the initiatives of the Bangko Sentral ng Pilipinas to provide inclusive financial services to a greater number of Filipinos.
“We see digital banking as the next growth area globally and increasingly in ASEAN and so we are excited to partner with global investment giants Apis and ARC in taking part in this global play by building further success for South Africa’s leading digital bank TymeBank,” stated JGS president and chief executive officer Lance Y. Gokongwei.
“The investment not only propels the Gokongwei Group to accelerate its foray into disruptive digital plays, it also allows us to learn more about TymeBank’s experiences that provide a good impetus for us in considering to apply their technology and success in the Philippines,” he added.
JGDEV President & CEO Jojo Malolos asserts that the technological know-how and expertise to be gained from its investment in Tyme will add significant value to the core businesses of the Gokongwei Group, drive further digital transformation within the conglomerate, and, most important of all, allow it to reach the previously unbanked or underserved market. “Covid has accelerated adoption of digital technologies in the country and for us, this investment reinforces our capability to bring financial services deeper into the group’s ecosystem and the underserved segments of the Philippine population. Tyme’s disruptive innovation will help us to better adopt an agile and innovative mindset to provide better choices to customers,” Malolos said.
Established in 2019 as the corporate venture capital investment arm of JG Summit to focus on next-generation digital businesses, JGDEV’s current portfolio includes iPrice, Southeast Asia’s leading shopping companion that offers consumers a catalog of 5 billion products; digital procurement tool Growsari targeted toward digitalizing local neighborhood retail or sari-sari stores; all-in-on hotel operating system Zuzu; virtual logistics platform Zyllem; and consumer data analytics tool Snapcart.
