South African fintech firm Lesaka Technologies has announced a significant move in the local financial sector. The company has agreed to acquire Bank Zero, a rapidly growing digital bank, for R1.09 billion (approximately $61.4 million). This deal marks one of the most significant fintech acquisitions in South Africa in recent years.
The payment structure is notable. Lesaka will issue new shares as part of the transaction, instead of paying entirely in cash. When the deal is finalised, Bank Zero shareholders are set to receive approximately 12% of Lesaka’s fully diluted shares. This stake could give them a strong voice in the combined company’s future.
Additionally, Lesaka has agreed to pay up to R91 million (around $5.1 million) in cash. This extra payment is likely tied to specific milestones or conditions being met after the acquisition closes.
Both companies have built strong reputations for innovation. Bank Zero, co-founded by former FNB CEO Michael Jordaan, has attracted attention for its low-fee, app-driven banking model. Lesaka, meanwhile, has carved out a niche by offering digital financial services across southern Africa.
The deal is expected to create new opportunities for both firms. Lesaka gains access to Bank Zero’s cutting-edge technology and growing customer base. Bank Zero benefits from Lesaka’s scale and resources, potentially accelerating its expansion plans.
Regulatory approval and other standard closing conditions must still be met. If all goes smoothly, the transaction could reshape South Africa’s digital banking landscape for years to come.
Bank Zero, launched in 2018, aimed to transform the face of banking in South Africa. Its founders envisioned a fully digital bank, built from the ground up to serve both individuals and businesses through an innovative mobile app.
From the beginning, Bank Zero focused on offering transparent fees, user-friendly features, and robust security. Customers could open accounts, make payments, and manage finances entirely from their smartphones — no paperwork or branch visits required.
As word spread, more South Africans embraced this fresh approach to banking. By the end of April 2025, Bank Zero’s deposit base had soared past ZAR400 million. Over 40,000 active, funded accounts were scattered across the country, reflecting trust in the platform.
The bank’s growth wasn’t just about numbers. It became known for quick customer support and regular updates that responded directly to user feedback. Small businesses especially appreciated its seamless onboarding and cost-saving tools.
In a few short years, Bank Zero proved that a homegrown, app-driven bank could compete with established giants. Its journey continues, driven by technology and a commitment to making banking more straightforward for everyone in South Africa.
Zero marks a pivotal chapter in Lesaka’s story. With this transformative event, we are not just growing — we are evolving how we serve consumers, merchants, and enterprise clients across our markets.
By integrating a trusted and expertly engineered neobank capability into our fintech platform, we are laying the foundation for a new era of financial services. This integration means safer, more innovative, and more accessible banking for everyone we serve.
The arrival of the Bank Zero team signals more than just an expansion; it’s a partnership rooted in shared vision and expertise. Their innovative approach and technical excellence will accelerate our mission to bring cutting-edge digital banking to our customers.
I am genuinely delighted to welcome the Bank Zero team as partners on this journey. Together, we are shaping the future of fintech at Lesaka — building trust, value, and opportunity at every step.
Lesaka described the acquisition of Bank Zero as a pivotal move in its journey to build a fully integrated fintech platform. According to Lesaka, this deal is not just an expansion — it’s a transformation.
Bank Zero brings with it a robust digital banking infrastructure and a valuable banking licence. Lesaka, on the other hand, has developed strong fintech solutions and an extensive distribution network across South Africa. By combining these strengths, Lesaka believes it can unlock powerful new synergies.
The merger is expected to streamline operations and pave the way for the development of innovative financial products. Lesaka anticipates significant strategic benefits, including greater flexibility to launch new services and reach previously underserved markets.
Additionally, integrating Bank Zero’s regulatory compliance capabilities will strengthen Lesaka’s position in the tightly regulated financial sector. Ultimately, Lesaka sees this acquisition as a leap forward — one that will redefine its role in the digital finance landscape.
The new initiative is poised to significantly enhance customer service by introducing advanced banking solutions tailored to individual needs. Customers can look forward to more intuitive interfaces, faster transactions, and a broader range of financial products designed with their convenience in mind.
By bringing together diverse capabilities, the project aims to drive powerful synergies across Lesaka’s consumer, merchant, and enterprise divisions. These divisions will work more closely than ever before, sharing resources and expertise to deliver seamless experiences to all users.
Innovation stands at the heart of this transformation. New technologies and creative approaches will be encouraged, opening up fresh possibilities for both businesses and everyday consumers. This spirit of invention is expected to keep Lesaka at the forefront of the financial sector.
Operations will be streamlined, reducing complexity and increasing efficiency throughout the organisation. Customers and partners alike will benefit from quicker service, fewer errors, and smoother interactions across every touchpoint.
Crucially, these changes are set to transform Lesaka’s financial profile. Improved efficiency and new revenue streams will strengthen the company’s position in the market, supporting sustainable growth.
Ultimately, South African consumers and businesses will see greater value. Whether through easier access to banking services or innovative tools for merchants, the initiative promises to make financial life simpler and more rewarding for everyone involved.
Furthermore, Lesaka expects that this transaction will significantly strengthen its balance sheet. By acquiring additional customer deposits, the company aims to secure a more stable and cost-effective source of funding. This shift will help support both its current lending operations and future expansion plans. Access to these deposits is also projected to improve the economics of its lending unit, as it will rely less on external financing and more on internally sourced funds.
Additionally, Lesaka plans to utilise the proceeds from the deal to reduce bank debt within its Consumer and Merchant divisions. This deliberate move towards deleveraging could result in a substantial reduction of gross debt, potentially by more than ZAR1 billion. Such a reduction would not only ease financial pressure but also provide greater flexibility for future investments and growth opportunities.
Of course, all these benefits hinge on receiving the necessary regulatory approvals. If successful, the transaction could mark a turning point for Lesaka, positioning the company for a more resilient and sustainable financial future.
Once the deal is finalised Bank Zero’s shareholders — among them chairman Michael Jordaan and CEO Yatin Narsai — will collectively own around 12% of Lesaka. This marks a significant shift, as the founders and key executives of Bank Zero will now have a substantial stake in Lesaka’s future.
As part of the agreement, Michael Jordaan will take a seat on Lesaka’s board of directors. His experience as chairman, combined with his deep understanding of the fintech landscape, will bring valuable insights to the board’s decisions. Meanwhile, Yatin Narsai will remain at the helm of Bank Zero as its CEO, ensuring continuity in leadership and vision.
Jordaan explained that this transaction goes beyond a simple acquisition. He described it as a strategic partnership founded on a long-term alignment between the two companies. Importantly, all of Bank Zero’s founders and management team will stay actively involved, helping to guide the next chapter of growth.
This new partnership sets the stage for closer collaboration between Bank Zero and Lesaka, opening up fresh opportunities for innovation in the financial sector.
Our confidence in the future of the combined platform is unwavering. We are deeply aligned in our vision to reshape financial services through innovation and technology. The synergy between our teams and ambitions is unmistakable, setting a solid foundation for what lies ahead.
Looking globally, there are numerous examples of fintech companies successfully acquiring banking licenses or institutions. This strategic move has enabled them to offer more integrated and seamless financial products. It also ensures robust compliance with regulatory standards while optimising capital efficiency.
This approach can unlock significant value, not just for our organisations but also for the broader market. By joining forces, we are positioned to deliver a new generation of financial services that are both accessible and secure. We aim to create a digital banking experience that meets the evolving needs of customers across South Africa and beyond.
The acquisition marks a pivotal chapter in our journey. Together, we are poised to establish a new benchmark in digital banking, drawing inspiration from international success stories and leveraging local expertise.
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