Despite glimmers of profit, most African neobanks remain in the red
- TymeBank became profitable for the first time in December 2023.
- TymeBank has had mega funding rounds and was valued at $965 million.
- African neobanks are predominantly loss-making entities.
The challenges faced by African fintech startups, particularly neobanks, in achieving sustained profitability are evident. While there are some success stories, such as TymeBank's recent profitability, the overall landscape remains challenging. The introduction of lending products and addressing credit impairment issues are crucial steps for neobanks to overcome these challenges and achieve long-term success.
