African Rainbow Capital (ARC), the investment holding company led by Africa’s first Black Billionaire Patrice Motsepe, is backing Lesaka Technologies’ expansion in the financial technology (fintech) industry.
NASDAQ-listed Lesaka, with a market cap of nearly $300 million, has struck a deal to acquire payments technology firm Adumo for R1.59 billion ($85 million) in a cash-and-share deal. This acquisition brings ARC on board as an investor in Lesaka.
Lesaka expands payments reach with Cape Town-based Adumo
Founded in 2019, Cape Town-based Adumo provides card-acquiring point-of-sale (POS) devices, integrated payments, and reconciliation services to merchants and consumers. The company processes over R24 billion ($1.3 billion) annually and boasts 23,000 merchants and 240,000 consumers using its services.
Lesaka already owns EasyPay, South Africa’s largest non-bank-owned payment switch, and Kazang, a popular card-acquiring POS device company. Combining these services positions Lesaka to capture a significant market share in Southern Africa, surpassing competitors like YOCO currently limited to South Africa.
ARC’s diversification and Motsepe’s fintech influence
ARC’s investment in Lesaka diversifies its portfolio and expands Motsepe’s influence in the fast-growing fintech and digital banking space. Through ARC Financial Services Holding, a Black-owned and -controlled company under Ubuntu-Botho Investments (UBI, founded by Motsepe), he also holds a significant stake in TymeBank, South Africa’s leading digital bank.
TymeBank, bolstered by its “phygital” approach and strategic partnerships, is nearing 10 million customers, just months after reaching 8 million in October 2023 (less than five years since its inception).
Lesaka poised for further growth
With ARC’s backing, Lesaka, a Johannesburg-based fintech, is positioned for further growth. In February, it acquired Touchsides, a data analytics and merchant services company with more than 10,000 South African POS terminals (previously owned by Heineken), for an undisclosed sum.
Patrice Motsepe is strategically diversifying beyond his billion-dollar mining group, African Rainbow Minerals, the source of most of his $2.8 billion net worth. Motsepe, who became Africa’s first Black billionaire in 2008 thanks to his mining ventures, is establishing a new base for his fortune, building resilience, and seeking future opportunities.
