South Africa’s TymeBank plans to acquire Retail Capital, a local fintech start-up targeting small and medium-sized enterprises (SMEs), to boost its banking offerings.

The digital bank's acquisition plan is subject to regulatory approvals, TymeBank said in a press statement.

The move will see Retail Capital become a division of TymeBank, thus serving a broader customer base.

The digital bank believes channeling funding efficiently to business owners in South Africa is critical to expanding the historically underserved small business sector.

“This acquisition will enable TymeBank to expand its offering to entrepreneurs to include working capital finance,” said TymeBank CEO Coen Jonker.

In the last ten years, Retail Capital has provided more than 43,000 business owners in South Africa with over R5.5 billion ($331 million) in working capital, making it the largest SME funder of its kind in the sector.

Tyme Group’s multi-country digital banking presence will enable Retail Capital’s international expansion into other markets, the statement said.

(Editing by Cleofe Maceda;