South African fintech company Lesaka Technologies has signed a deal to acquire local digital bank Bank Zero for R1.09bn ($61.4m).

The acquisition payment will be made via newly issued shares, granting Bank Zero shareholders about 12% of Lesaka’s fully diluted shares upon transaction completion, plus up to R91m ($5.1m) in cash. 

Bank Zero, founded in 2018, provides an app-driven platform for retail and commercial banking services.  

By the end of April 2025, it had a deposit base of more than ZAR400m and over 40,000 funded accounts across South Africa.  

Lesaka chairman Ali Mazanderani said: “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. I am delighted to welcome the Bank Zero team to Lesaka as partners.” 

Lesaka explained that acquiring Bank Zero is a key step in creating a fully integrated fintech platform.  

By merging Bank Zero’s digital banking infrastructure and licence with Lesaka’s fintech and distribution capabilities, the aim is to “transform” Lesaka’s operations, delivering financial, strategic, and regulatory advantages.  

It is expected to enhance customer service with banking solutions, drive synergies, spur innovation, streamline operations across consumer, merchant, and enterprise divisions, transform Lesaka’s financial profile, and create greater value for South African consumers and businesses. 

Furthermore, Lesaka anticipates the transaction will enhance its balance sheet, enabling funding of ongoing and future lending growth through customer deposits, improving lending unit economics.  

Additionally, reducing bank debt in its Consumer and merchant divisions will support deleveraging, potentially cutting gross debt by over ZAR1bn after completion, pending regulatory approval. 

Upon completion, Bank Zero’s shareholders, including chairman Michael Jordaan and CEO Yatin Narsai, will hold approximately 12% of Lesaka.  

Jordaan will join Lesaka’s board of directors, while Yatin Narsai will continue as CEO of Bank Zero. 

Jordaan added: “This transaction reflects a strategic partnership underpinned by long-term alignment, which will result in the continued involvement of all Bank Zero founders and management.  

“Our belief in the combined platform’s future is clear and we see strong symmetry in our vision. There is a strong international precedent for fintechs that have acquired banking capabilities to deliver more integrated, compliant and capital-efficient financial services.”