Latest news with #LesakaTechnologies
Yahoo
30-06-2025
- Business
- Yahoo
South African fintech Lesaka to buy Bank Zero in digital banking push
South African fintech company Lesaka Technologies has signed a deal to acquire local digital bank Bank Zero for R1.09bn ($61.4m). The acquisition payment will be made via newly issued shares, granting Bank Zero shareholders about 12% of Lesaka's fully diluted shares upon transaction completion, plus up to R91m ($5.1m) in cash. Bank Zero, founded in 2018, provides an app-driven platform for retail and commercial banking services. By the end of April 2025, it had a deposit base of more than ZAR400m and over 40,000 funded accounts across South Africa. Lesaka chairman Ali Mazanderani said: 'The acquisition of Bank Zero is a transformative event in Lesaka's journey, enabling us to better serve our consumers, merchants and enterprise clients by embedding a trusted, well-engineered neobank capability into our fintech platform. I am delighted to welcome the Bank Zero team to Lesaka as partners.' Lesaka explained that acquiring Bank Zero is a key step in creating a fully integrated fintech platform. By merging Bank Zero's digital banking infrastructure and licence with Lesaka's fintech and distribution capabilities, the aim is to 'transform' Lesaka's operations, delivering financial, strategic, and regulatory advantages. It is expected to enhance customer service with banking solutions, drive synergies, spur innovation, streamline operations across consumer, merchant, and enterprise divisions, transform Lesaka's financial profile, and create greater value for South African consumers and businesses. Furthermore, Lesaka anticipates the transaction will enhance its balance sheet, enabling funding of ongoing and future lending growth through customer deposits, improving lending unit economics. Additionally, reducing bank debt in its Consumer and merchant divisions will support deleveraging, potentially cutting gross debt by over ZAR1bn after completion, pending regulatory approval. Upon completion, Bank Zero's shareholders, including chairman Michael Jordaan and CEO Yatin Narsai, will hold approximately 12% of Lesaka. Jordaan will join Lesaka's board of directors, while Yatin Narsai will continue as CEO of Bank Zero. Jordaan added: 'This transaction reflects a strategic partnership underpinned by long-term alignment, which will result in the continued involvement of all Bank Zero founders and management. 'Our belief in the combined platform's future is clear and we see strong symmetry in our vision. There is a strong international precedent for fintechs that have acquired banking capabilities to deliver more integrated, compliant and capital-efficient financial services.' "South African fintech Lesaka to buy Bank Zero in digital banking push " was originally created and published by Retail Banker International, a GlobalData owned brand. The information on this site has been included in good faith for general informational purposes only. It is not intended to amount to advice on which you should rely, and we give no representation, warranty or guarantee, whether express or implied as to its accuracy or completeness. You must obtain professional or specialist advice before taking, or refraining from, any action on the basis of the content on our site. Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
IOL News
27-06-2025
- Business
- IOL News
Lesaka Technologies acquires Bank Zero for R1. 09 billion, boosting its fintech capabilities
Bank Zero CEO Yatin Narsai said their acquisition by Lesaka Technologies would allow the online digital bank to accelerate new revenue streams, improve capital efficiency and unlock synergies across their ecosystem. Image: AI Ron Lesaka Technologies' share price shot up 17.1% Friday morning after announcing it has entered into a R1.091 billion agreement to acquire 100% of South Africa's digital lender, Bank Zero Mutual Bank. The companies said Friday the acquisition will be settled through a combination of new shares—such that the shareholders of Bank Zero will own about 12% of Lesaka's shares at the time of completion of the proposed transaction—and up to R91 million in cash. "The acquisition of Bank Zero is a transformative event in Lesaka's journey, enabling us to better serve our consumers, merchants, and enterprise clients by embedding a trusted, well-engineered neobank capability into our fintech platform,' said Lesaka chairman Ali Mazanderani in a statement. "Our focus has always been on using technology to remove friction, lower costs, and challenge legacy banking norms. Joining forces with Lesaka allows us to accelerate that mission at scale—reaching more customers, faster. It represents a critical step for Lesaka and Bank Zero in realising new revenue streams, improving capital efficiency, and unlocking synergies across our ecosystem," said Bank Zero CEO Yatin Narsai. The 12% stake is valued at about R1bn based on the R88.26 share price. The share price was trading at R81.99 on Friday monring. The selling shareholders of Bank Zero—which include its chairman Michael Jordaan, CEO Yatin Narsai, and other key members of the bank—will collectively hold a 12% stake in Lesaka. The transaction is still subject to the regulatory approvals such as by the Prudential Authority and Competition Commission. Bank Zero, founded in 2018, is built on modern technology on an app-driven platform and a zero-fee banking model, offering retail and commercial banking services. As of the end of April 2025, Bank Zero had a deposit base in excess of R400m and more than 40 000 funded accounts across South Africa. Bank Zero's digital banking infrastructure and its operational banking licence, together with Lesaka's fintech and distribution platform, would transform the way Lesaka is able to conduct business in the future, said Mazanderani. These include better servicing of Lesaka's customers through full banking services, unlocking synergies and opportunities, accelerating innovation, and streamlining Lesaka's Consumer, Merchant, and Enterprise divisions—all enabling a shift in the financial profile of Lesaka and empowering the combined group to deliver greater value to consumers and businesses. 'Lesaka expects the transaction to support a more optimised balance sheet in the future, allowing the group to finance the existing and continued growth in lending books through customer deposits, driving stronger lending unit economics,' Lesaka said. In addition, the reduction in the use of bank debt in the group's Consumer and Merchant divisions would help to deleverage Lesaka's debt. After the deal, Lesaka could achieve a more than R1bn reduction in debt.
Bloomberg
27-06-2025
- Business
- Bloomberg
South Africa's Bank Zero, Lesaka to Combine in $61 Million Deal
South African digital lender Bank Zero Mutual Bank, founded by the former chief of one of the country's top lenders, is combining with a unit of fintech firm Lesaka Technologies Inc. in a 1.91 billion-rand ($61 million) deal. Lesaka, which trades on both the Nasdaq and Johannesburg bourses, will buy all of the lender founded and chaired by Michael Jordaan, the former chief executive officer of FirstRand Ltd.'s First National Bank unit, pending regulatory approvals, the companies said in a statement Thursday.
Zawya
28-05-2025
- Business
- Zawya
SmartSwitch Botswana brings financial inclusion to thousands of food grant recipients
SmartSwitch Botswana is blazing a trail for financial inclusion with a financial technology (Fintech) solution that puts dignity and financial services into food voucher beneficiaries' hands. Since it was established in 2006, Smart Switch has grown its footprint to more than 75 000 beneficiaries in underserved communities across Botswana. SmartSwitch Botswana, a subsidiary of Lesaka Technologies, was founded with the exclusive rights to deploy Botswana's Universal Electronic Payment System (UEPS). The UEPS has also been embraced and approved by the central banks of countries such as Namibia, Ghana, and South Africa as an accredited national payment system. At the heart of the offering is a secure, biometric-enabled smart card platform designed for the unbanked and underbanked. The system enables food grant recipients to safely receive, store, and spend funds at local merchant outlets while earning interest on unspent balances. The solution was developed in response to a Ministry of Local Government tender to overhaul Botswana's paper-based food basket system. The previous system—marked by inefficiencies, lack of choice, and social stigma—was failing the people it was meant to help. The tender had two main goals. Firstly, the Ministry of Local Government wanted to empower beneficiaries with choice in the food they acquired, when they could collect their food, and where they could collect their food. The second aim was to provide a dignified alternative to the stigma associated with the earlier system. 'Although we applied cutting-edge technology to the challenge, we also knew we needed to create a deeply human solution to address the audience's needs,' says France Mabiletsa, Managing Director of SmartSwitch Botswana. 'We had to provide beneficiaries with choice and restore their dignity.' Today, those goals have been exceeded. Beneficiaries no longer need to queue in the sun with wheelbarrows to collect pre-packaged goods. Beneficiaries receive a monthly allowance on a SmartSwitch card, which they can use at over 1,200 local shops, ranging from general dealers to corner stores. Each transaction is authenticated through biometric verification, ensuring security and privacy. The card looks like a bank-issued debit card, so it isn't apparent they are food allowance beneficiaries. In the first three years after implementation, more than 50,000 people, many of whom had never engaged with a financial institution, were integrated into Botswana's financial ecosystem. Today, over 75,000 beneficiaries have access to these smart banking tools, which include secure, offline-capable transactions via biometric-enabled POS devices The solution is equally transformative for merchants. Payments are settled within 48 hours, improving liquidity. Competition among stores has improved service quality, benefiting end users. 'The system has helped our business grow. We serve more customers, and we get paid quickly and securely,' said Kennete Mmusinyane of Obed Supermarket in Gumare in the Okavango District. With a track record of reliable delivery and innovation, SmartSwitch is gearing up for the next phase of its development. As the government prepares to issue a new tender, SmartSwitch has plans to introduce enhanced services and upgraded devices to further support beneficiaries and retailers. 'We're not standing still. We're reinvesting in the system to do more for more people,' says Mabiletsa. 'It is our aim to continue to be a trusted partner to the government, a reliable ally to merchants, and a gateway to dignity, choice, and empowerment for thousands of people in Botswana.' SmartSwitch is a member of Lesaka Technologies ( Distributed by APO Group on behalf of Kazang. About Kazang: Kazang ( is a leading provider of cash and digital solutions to merchants in Southern Africa's informal economies. Our fintech solutions include a diverse range of value-added services (VAS), card acquiring, secure cash vaults and supplier payments platforms. Operating with a network of approximately 90,000 active devices, we process approximately 2.2 million transactions daily in markets such as South Africa, Namibia, Botswana, and Zambia. We are dedicated to helping small and medium merchants grow and succeed, through increasing their sales, making their businesses more efficient and reducing their risks with our holistic portfolio of products and services. Kazang is a member of Lesaka Technologies ( About Lesaka Technologies, Inc: The Connect Group and Kazang was acquired by Lesaka Technologies, Inc. in April 2022. Lesaka Technologies, (Lesaka™) is a South African Fintech company that utilizes its proprietary banking and payment technologies to deliver superior financial services solutions to merchants (B2B) and consumers (B2C) in Southern Africa. Lesaka's mission is to drive true financial inclusion for both merchant and consumer markets through offering affordable financial services to previously underserved sectors of the economy. Lesaka offers cash management solutions, growth capital, card acquiring, bill payment technologies and value-added services to retail merchants as well as banking, lending, and insurance solutions to consumers across Southern Africa. Lesaka has a primary listing on NASDAQ (NasdaqGS: LSAK) and a secondary listing on the Johannesburg Stock Exchange (JSE: LSK). Visit for additional information about Lesaka Technologies (Lesaka ™). $LSK / $LSAK
Daily Maverick
11-05-2025
- Business
- Daily Maverick
From São Paulo to Soweto — how Prosus and Lesaka are defining growth on the JSE
Prosus and Lesaka present a tale of two tech companies and their differing approach to growth Growth stocks aren't very common on the JSE. This is unfortunately a function of the broader economic situation that we've been in for many years now, where South Africa just isn't a supportive environment for high-growth companies. And where they do exist, they often have offshore exposure as the major source of excitement! An example of this is Prosus-Naspers. Although it does own some South African businesses, that's not where the focus is for group investors. It's all about the opportunities in places such as China, India and South America. With Fabricio Bloisi at the helm, Prosus could be described as building a 'non-US' platform business that takes advantage of various different e-commerce models. Given the questions being asked at the moment about whether US exceptionalism is still a thing, that seems like an appealing strategy. All talk and no action doesn't cut it though, so shareholders are focusing on whether Prosus can transform from an incoherent group that was built with a spray-and-pray acquisition strategy into a sensible portfolio of profitable, successful businesses. So far, so good – in a letter to Prosus shareholders, Bloisi noted that the group expects to achieve more than $435-million (R7.9-billion) in adjusted earnings before interest and taxes (EBIT) for the 2025 financial year, which is in excess of the target of $400-million (R7.3-billion). Within that growth story, there are pockets of particularly high growth, like OLX (adjusted EBIT up more than 50%) and iFood (adjusted earnings before interest, taxes, depreciation and amortisation – EBITDA – more than doubled). There are also longer-term plays to help the group reach its target of 'many, many billions' rather than just millions when it comes to adjusted EBIT. India is perhaps the most interesting one on the table at the moment, with Prosus having invested in various platform businesses in the region. And of course, let's not forget the potential of Tencent in China. I have a long position in Prosus as I have really been enjoying the narrative coming from Bloisi since he joined the group. It's encouraging to see the delivery on promises thus far, supporting a share price increase of more than 30% in the past year. This has also been highly supportive of the local broad market index, as Naspers is the largest constituent of the Top 40 and Prosus is the sixth largest. Together, they contribute roughly 17.5% of the index. Although the underlying growth might not be happening in South Africa, local investors are certainly benefiting from it. It's wait-and-see for Lesaka Technologies Another example of a locally listed growth stock is Lesaka Technologies, best described as a multiproduct fintech group that is particularly focused on SMEs and micro-merchants. This group isn't just locally listed, it is also focused mainly on South Africa and the broader continent in its strategic thinking. Although this is exciting, it's also not easy. It doesn't have a cash cow in the form of Tencent, and it certainly doesn't enjoy the scale or fortress balance sheet of Prosus-Naspers. Lesaka has a great deal of debt and a need to scale at pace to get on the right side of that debt. This financial risk is an overhang for the share price, with Lesaka down nearly 19% in the past 12 months despite posting decent growth in the underlying businesses. South African investors aren't particularly in love with the concept of adjusted EBITDA and how this gets used by growth stocks to tell a story around a scaling platform that isn't able to generate net profits yet owing to its funding profile. In the latest quarter, Lesaka reported adjusted EBITDA of R237-million, up 29%. It also reported a headline loss of $22-million or R400-million (note the currency here), much worse than $4-million (R73-million) a year ago. Although it is projecting positive net income in 2026, the market is taking a wait-and-see approach on this one Debt pressures certainly aren't stopping Lesaka from investing for the future. It can't sit on its hands, as the group hasn't scaled to a level that is sustainable. This is why group capital expenditure as a percentage of group-adjusted EBITDA has been between 35% and 57% over the past year, most of which relates to point-of-sale devices and cash vaults. The market will keep a close eye on the trend in adjusted EBITDA margin, particularly as EBITDA is ultimately what services the debt. It doesn't help to invest heavily to support revenue growth unless that revenue turns into profits. In Lesaka's merchant division, net revenue was up 58% but adjusted EBITDA was up just 7%, so there's quite a lag there. The consumer division was thankfully the other way around in terms of margin trend, with revenue growth of 32% supporting EBITDA growth of 65%. Lifting our heads to the broader trend in the group is a worthwhile exercise. Through a combination of acquisitions and organic growth, Lesaka has scaled from revenue of R1.3-billion in the 2022 financial year to guided revenue of R5.2-billion–R5.6-billion in the current financial year. Group adjusted EBITDA has moved from a negative R328-million to guided positive earnings of R0.9-billion–R1-billion. The question is whether the incremental adjusted EBITDA margin is lucrative enough. Assuming it hits the upper end of FY25 guidance for the sake of the maths, it would have grown revenue by R4.3-billion and EBITDA by more than R1.3-billion from FY22–F25, which is an incremental adjusted EBITDA margin of 30%. As platform businesses go, that's not as exciting as one would hope. Fintech models don't always enjoy the highest margins, as much of their business is built around payments solutions that are hotbeds of competition among banking groups and other fintech companies. Lesaka will need to demonstrate to the market that it can achieve consistently strong EBITDA margins, all while scaling quickly enough to overcome the substantial net debt pile of R2.3-billion. Building a genuine market disrupter isn't easy. DM
