Lesaka Technologies Inc.,  a prominent fintech platform in Southern Africa, has announced a strategic agreement to acquire 100% of Bank Zero Mutual Bank , marking a pivotal moment in its evolution toward a more integrated, full-spectrum financial services offering. The transaction, structured as a combination of newly issued shares and up to ZAR 91 million (approximately $5.1 million) in cash, will give Bank Zero’s shareholders an estimated 12% stake in Lesaka’s fully diluted shareholding upon completion.

This acquisition aims to bolster Lesaka’s ability to deliver end-to-end banking services to individuals, businesses, and merchants, all integrated into a secure, scalable, and digital-first platform. It also introduces a significant opportunity to enhance Lesaka’s balance sheet efficiency and reduce its reliance on bank debt across its Consumer and Merchant Divisions.

Bank Zero, founded in 2018, is widely recognized as a pioneering South African digital bank built on modern infrastructure and a zero-fee banking model. Offering both retail and commercial banking services, the bank operates on an app-driven platform that prioritizes customer control, transparency, and cost-efficiency. As of April 2025, Bank Zero held over ZAR 400 million in deposits and serviced more than 40,000 funded accounts across the country.

The acquisition is subject to customary closing conditions and regulatory approvals from the South African Reserve Bank’s Prudential Authority, the Competition Commission, and Exchange Control authorities.

Upon completion, the Bank Zero founders and key management—including Chairman Michael Jordaan and CEO Yatin Narsai—will become shareholders in Lesaka, with their combined 12% stake subject to lock-up periods ranging from 18 to 36 months. Importantly, the transaction also ushers in governance and leadership continuity. Michael Jordaan, who brings over 20 years of experience in financial services including a decade as CEO of First National Bank (FNB), will join the Lesaka Board of Directors. Yatin Narsai, who also previously served as CEO of FNB’s Retail Bank, will continue in his role as CEO of Bank Zero. The broader leadership team at Bank Zero will remain in place, ensuring operational consistency as the two companies integrate.

“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.”

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“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. We are confident that the synergies between our digital banking infrastructure and Lesaka’s fintech reach will create sustainable value for all stakeholders.”

Chairman, Bank Zero

“Bank Zero was built from the ground up to deliver a secure, digital-first banking experience that puts control back in the hands of customers. 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 – while staying true to the principles that define who we are. It represents a critical step for Lesaka and Bank Zero in realizing new revenue streams, improving capital efficiency and unlocking synergies across our ecosystem.”

–Yatin Narsai, CEO, Bank Zero

Pending customary closing conditions and regulatory approvals from bodies including the South African Reserve Bank’s Prudential Authority, the Competition Commission, and Exchange Control authorities, the transaction represents another major milestone in Lesaka’s plan to build a vertically integrated, tech-forward financial ecosystem.

Lesaka expects that, once completed, the acquisition could contribute to a reduction in gross debt of over ZAR 1.0 billion, improve lending economics through greater use of customer deposits, and position the group to deliver increased long-term value to consumers and businesses across Southern Africa.