Lesaka to Acquire South Africa's Bank Zero in $61M Deal
TLDR
- Lesaka Technologies has agreed to acquire 100% of Bank Zero in a deal valued at R1.1 billion ($61.4 million)
- The deal, pending regulatory approval, gives Lesaka a 100% stake in the zero-fee digital bank and marks a shift from fintech to fully licensed digital banking
- Bank Zero, launched in 2021 by former First National Bank executives Michael Jordaan and Yatin Narsai, has over R400 million ($22 million) in deposits
Lesaka Technologies has agreed to acquire 100% of Bank Zero in a deal valued at R1.1 billion ($61.4 million), comprising R1 billion ($56.3 million) in Lesaka shares and up to R91 million ($5.1 million) in cash. The deal, pending regulatory approval, gives Lesaka a 100% stake in the zero-fee digital bank and marks a shift from fintech to fully licensed digital banking.
The agreement assumes a Lesaka share price of R88.26 ($4.97). If the share price rises before completion, the cash portion will increase, and the equity portion will adjust to keep the total value fixed.
Bank Zero, launched in 2021 by former First National Bank executives Michael Jordaan and Yatin Narsai, has over R400 million ($22 million) in deposits and more than 40,000 funded accounts as of April 2025. Lesaka expects the neobank to be profitable in its first year post-acquisition.
Daba is Africa's leading investment platform for private and public markets. Download here
Key Takeaways
The acquisition gives Lesaka Technologies immediate access to a full banking license, customer deposits to fund lending activities, and a mature, digital-first banking infrastructure. These assets will help the company diversify revenue, expand its product suite for consumers and merchants, and potentially reduce reliance on external bank debt, currently exceeding R1 billion ($56 million). For Bank Zero, the deal offers scale and access to a broader customer base via Lesaka’s fintech distribution channels. Narsai will remain as CEO, and the founding team will stay on, subject to shareholding lockups of 18 to 36 months. Jordaan will join Lesaka’s board. The transaction reinforces a growing trend where fintech platforms pursue banking licenses to gain control over deposit funding and regulatory flexibility. It also signals intensifying consolidation in South Africa’s digital financial services sector as firms seek end-to-end integration of payments, lending, and banking. Lesaka is expected to release additional financial details in its September 2025 year-end results. The company was advised by Rand Merchant Bank, with Webber Wentzel & Rouse acting as legal counsel.
Think someone else should see this?
To invest in this opportunity and other opportunities across Africa
Download the daba finance app on your mobile through
Take action.
Download app
Start investing in Africa’s best opportunities, including stocks, bonds, startups, venture funds, and more.
Partner with us
Unlock exciting business opportunities and growth potential.
Join Daba
Become a part of our vibrant community and enjoy exclusive benefits.
Contact us
Reach out to us for inquiries, support, or collaboration.