Lesaka acquires Bank Zero for R1.1 billion, see reason, other details

In a bold move to deepen its integration into digital banking, Lesaka Technologies has agreed to acquire Bank Zero, the innovative digital-only bank founded by Michael Jordaan and Yatin Narsai, for R1.1 billion.

The transaction positions Lesaka to retain Bank Zero’s leadership and systems, leveraging the bank’s fintech infrastructure to bolster its pan-African ambitions.

Deal Overview: A R1.1 Billion Acquisition

Lesaka will purchase all issued shares of Bank Zero in a deal valued at approximately R1.1 billion (US$62 million) . In exchange, Bank Zero’s core stakeholders—including co‐founders Jordan and Narsai—will receive a 12 percent equity stake in Lesaka, ensuring their continued influence. Michael Jordaan will assume a position on Lesaka’s board.

Strategic Fit: Why Lesaka Wanted Bank Zero

This move aligns with Lesaka’s mission to become Africa’s leading integrated fintech platform. Bank Zero brings:

• A fully licensed banking infrastructure, deposit base (~R400 million), and more than 40,000 customers .
• Highly efficient and innovative operations, such as no-branch banking and free app-driven accounts .
• A mutual bank model prioritising user control, transparency, and fee-free services .

Ali Mazanderani, Lesaka’s Chair, described the acquisition as “transformative,” recognising the opportunity to embed trusted digital banking into Lesaka’s existing fintech ecosystem.

Leadership Continuity & Shareholding Structure

The deal allows Bank Zero’s current leadership to remain intact. Yatin Narsai will continue as Bank Zero’s CEO, while both he and Jordaan will retain equity and strategic roles within the expanding organisation. This ensures critical expertise and continuity as the two entities merge.

Potential Impacts on Lesaka’s Fintech Growth

• Revenue diversification: Bank Zero adds core banking income such as deposit interest and interchange fees .
• Expanded customer base: Combining Lesaka Pay, EasyPay, and Bank Zero’s users could position the group as a major player in Southern African fintech.
• Debt reduction: The deal is expected to reduce Lesaka’s gross debt by over R1 billion post-transaction.

Transaction Timetable & Outlook

The acquisition is subject to regulatory approval and targeted for closure later this year. Lesaka anticipates incremental contributions to its FY2025 results, which will be disclosed by September 4, 2025 . Bank Zero is also aiming to reach profitability within the next fiscal year.

Financial and Market Context

Lesaka, listed on the JSE and NASDAQ, has been actively acquiring fintech businesses, including Adumo (R1.6 billion in October 2024) and Recharger (March 2025) to enhance its merchant services.

 Supported by Alexandre Motsepe’s African Rainbow Capital, Lesaka is rapidly transforming into a fintech champion focused on financial inclusion and service innovation.

Lesaka’s acquisition of Bank Zero marks a strategic leap in the consolidation of digital banking assets in Africa. By merging low-cost fintech solutions with a licensed banking structure, the group is positioning itself to serve underserved consumers and small businesses with a more integrated, efficient, and scalable financial platform.