Lesaka Technologies is doubling down on South Africa’s fintech boom, agreeing to acquire Johannesburg-based neobank Bank Zero for ZAR 1.091 billion ($61.4 million).
The deal merges digital banking with Lesaka’s fintech muscle, aiming to supercharge innovation and service delivery.
What’s happening
Lesaka, through its subsidiary Lesaka Technologies Proprietary Limited, will fund the acquisition with ~12% of its fully diluted shares and up to ZAR 91 million ($5.1 million) in cash.
The deal needs green lights from South Africa’s Prudential Authority, Competition Commission, and Exchange Control. No closing date was shared.
- Leadership moves: Bank Zero’s chairman, Michael Jordaan, joins Lesaka’s board, while CEO Yatin Narsai and the leadership team stay put, ensuring a smooth transition.
- Bank Zero’s footprint: Founded in 2018, the neobank serves over 40,000 retail and commercial accounts via its app.
Why it matters
The tie-up blends Bank Zero’s digital banking infrastructure and license with Lesaka’s fintech and distribution platform, promising faster product rollouts and better services across consumer, merchant, and enterprise segments. Lesaka calls it a “transformative shift” for its financial profile.
Zoom in
Lesaka, led by chairman Ali Mazanderani, already spans transactional accounts, lending, insurance, merchant acquiring, and alternative digital payments. This follows its $85.9 million acquisition of paytech firm Adumo in 2024, adding POS and SaaS solutions.
What they’re saying
“The acquisition of Bank Zero is a transformative event in Lesaka’s journey, enabling us to better serve our consumers, merchants, and enterprise clients,” Mazanderani said.
The bottom line: Lesaka’s latest move cements South Africa’s growing fintech clout, mirroring global trends like Sweden’s Länsförsäkringar Bank buying Savr to boost digital investments.
Source: Future Fintech
