Lesaka Technologies has made significant waves in the financial landscape after its share price surged 17.1% Friday morning, following the announcement of its R1.091 billion agreement to acquire a 100% stake in South Africa’s innovative digital lender, Bank Zero Mutual Bank. This bold move is expected to transform Lesaka’s operational capabilities and market positioning in the fast-evolving fintech space.
The acquisition strategy involves a blend of new shares and cash, ensuring that Bank Zero shareholders will control approximately 12% of Lesaka upon completion of the transaction. With Lesaka’s shares trading at R81.99 on the morning of the announcement, the new stake is valued at about R1 billion, representing a significant partnership between the two entities.
“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,” remarked Lesaka chairman, Ali Mazanderani.
Bank Zero, established in 2018, has rapidly gained traction with its app-driven platform and zero-fee banking model, catering to both retail and commercial banking needs. The bank has showcased impressive growth, boasting a deposit base exceeding R400 million and over 40,000 funded accounts as of April 2025.
Yatin Narsai, CEO of Bank Zero, expressed his enthusiasm about joining forces with Lesaka: “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…”
As both companies move toward the regulatory approvals needed—including endorsements from the Prudential Authority and the Competition Commission—industry observers are keen to see the impact of this acquisition on their respective operations.
Lesaka envisions that integrating Bank Zero’s digital banking infrastructure with its established fintech and distribution platform will revolutionise its business model. The acquisition is projected to enhance customer service through comprehensive banking services, unlock new synergies, and drive rapid innovation, particularly within Lesaka’s Consumer, Merchant, and Enterprise divisions.
Moreover, Lesaka anticipates that the transaction will lead to a more optimised balance sheet, securing financing for ongoing growth in lending through customer deposits and enhancing lending unit economics. Notably, addressing the current debt levels is also a priority, with estimates suggesting a potential reduction of over R1 billion post-acquisition.
Expectations are high around the financial benefits of the acquisition, with Lesaka forecasting that Bank Zero will become profitable within the fiscal year following the deal’s finalisation. More details regarding the transaction and its implications are anticipated when Lesaka releases its annual results around September 4, 2025.
In their recent financial report for the third quarter ending March 31, Lesaka logged R2.5 billion in revenue—a figure that, while aligning with projections, fell short of last year’s performance. Operating income also decreased substantially, attributed to increased one-off transaction costs. Furthermore, a notable net loss of R404.3 million contrasted sharply with a negligible loss in the previous year, underscoring the need for strategic recalibrations.