Strategic Move in South African Fintech
Lesaka Technologies, a top South African fintech firm, has announced plans to acquire digital-only Bank Zero Mutual Bank in a R1.1 billion ($62 million) deal. The acquisition, pending regulatory approval, will give Lesaka full ownership of Bank Zero’s ordinary shares.
Deal Structure and Key Benefits
Under the agreement, Bank Zero shareholders will receive 12% of Lesaka’s diluted shares plus up to $5.1 million in cash. By integrating Bank Zero’s infrastructure, Lesaka can expand its financial product offerings and reach more customers.
Bank Zero’s Strong Digital Presence
Founded in 2018, Bank Zero has become a leading digital mutual bank in South Africa. Currently, it holds ZAR400 million in deposits and serves over 40,000 funded accounts. Its app-only model and zero-fee structure have made it a popular choice for tech-savvy consumers.
Leadership Stability Post-Acquisition
Importantly, Bank Zero’s leadership will remain unchanged. Chairman Michael Jordaan and CEO Yatin Narsai will continue leading the bank during the transition. Jordaan stated that the deal reflects shared long-term goals between the two companies.
A Major Step for Lesaka’s Growth
Lesaka’s chairman, Ali Mazanderani, called the acquisition a “transformative event”. He emphasized that merging with Bank Zero will help Lesaka deliver more inclusive and tech-driven banking solutions across South Africa.
A New Chapter for South African Fintech
This deal marks a major shift in the region’s financial services landscape. By combining Bank Zero’s licence and customer base with Lesaka’s digital infrastructure, the merger will enable better banking access, improved services, and future innovation. It’s a bold leap forward for South Africa’s fintech evolution.