As part of the deal that will see Lesaka Technologies acquire a 12% share in Lesaka Technologies worth approximately R1 billion ($56.3million) plus up to R91 millions ($5.1million) in cash. Fully acquire The zero-fee Digital Bank.
Lesaka’s R1.1 billion ($61.4m) deal, which is pending regulatory approval and will be finalized once the deal has been approved, marks a strategic change from fintech to fully-licensed digital banking.
This agreement is based upon an assumed Lesaka share value of ZAR 88.26 (US$4.97). If the share price increases when the deal is finalised the cash portion of the deal will increase, and the equity portion decreases, maintaining the overall value. Bank Zero will be profitable in the first year of ownership by Lesaka.
Co-founded by former First National Bank executives Michael Jordaan, and Yatin Narasi, Bank Zero launched in 2021, with a radical proposition – a no-fee banking experience that is entirely app-based. By April 2025 it had over R400 millions (over $22million) in deposits, and over 40,000 fully funded accounts. Narsai stated that “Bank Zero was designed from the ground-up to deliver a secure and digital-first banking service.”
“Joining with Lesaka allows for us to accelerate this mission at scale, reaching more customers faster, while staying true to the values that define who we’re.”
This deal gives Lesaka access Bank Zero’s license and tech-driven architecture, enabling it offer a full range of banking services, tap new revenue streams, fund loan growth through customer deposits instead of bank debt, as well as potentially reduce a gross of debt of over R1billion (over $56m). Lesaka chairman Ali Mazanderani said that the acquisition of Bank Zero was a transformative moment in Lesaka’s history. It allows us to better serve consumers, merchants and enterprise clients, by embedding trusted, well-engineered, neobank capabilities into our fintech platforms. The founding team will remain with shareholding locks ranging from 18-36 months. Rand Merchant Bank acted as the financial advisor on this deal and Webber Wentzel & Rouse acted as legal counsel. Lesaka will provide more financial details in September 2025 if all conditions are met. Mark your calendars
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