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Key Points
- The fintech firm’s revenue rose 4.42% to $292.36 million, but net loss surged from $8.36 million to $36.65 million.
- African Rainbow Capital’s investment in Lesaka aligns with its strategy to diversify beyond mining, reinforcing its presence in digital financial services.
- Chairman Ali Mazanderani projects Group Adjusted EBITDA of up to $78.5 million for FY2026, emphasizing long-term expansion in Africa’s fintech sector.
Lesaka Technologies, the fintech firm backed by African Rainbow Capital (ARC)—the investment group led by Africa’s first Black billionaire, Patrice Motsepe—reported mixed financial results for the six months ended Dec. 31, 2024. Revenue continued to grow, but widening losses weighed on profitability.
The company's net loss deepened from $8.36 million to $36.65 million, even as revenue exceeded $290 million, driven largely by its merchant division, which contributes more than 79 percent of total revenue. While acquisitions and business expansion supported growth, they also put pressure on margins.
Revenue rises, but losses deepen
Lesaka’s latest financial update showed revenue rising 4.42 percent year-over-year to $292.36 million, largely fueled by its merchant business. The consumer segment, which accounts for 79.2 percent of total revenue, recorded modest growth of 0.96 percent, while net revenue jumped 35.2 percent to $135.87 million. However, increased costs and investments in expansion led to a sharp rise in net loss, climbing from $8.36 million to $36.65 million.
Lesaka Chairman Ali Mazanderani remained optimistic about the company’s performance, saying, “I am pleased that we exceeded our Group Adjusted EBITDA guidance for the quarter and can re-affirm our FY2025 guidance.” He noted that Lesaka has now met profitability guidance for ten straight quarters and projected Group Adjusted EBITDA to reach between R1.25 billion ($67.68 million) and R1.45 billion ($78.5 million) for FY2026.
Lesaka continues to strengthen its position in Africa’s fast-evolving fintech space, where digital financial services adoption is accelerating. The company remains focused on expanding its role in financial inclusion and digital payments across the region.
Lesaka’s expansion gains traction under Motsepe’s backing
Motsepe’s investment in fintech is a key part of ARC’s strategy to diversify beyond mining. Lesaka, which is listed on both NASDAQ and the Johannesburg Stock Exchange (JSE), offers banking, lending, insurance, and bill payments. With a market capitalization of $409.7 million, the company is helping drive digital commerce across Southern Africa.
ARC’s support for Lesaka underscores Motsepe’s growing presence in fintech. Alongside Lesaka, he also holds a significant stake in TymeBank, South Africa’s leading digital-only bank, as part of broader efforts to expand his $2.7-billion fortune into financial services.
Despite its deepening losses, Lesaka’s assets grew 14.71 percent, rising from $558.45 million to $640.57 million as of Dec. 31, 2024. Total equity also climbed to $200.04 million, reinforcing the company’s financial standing in the software and digital payments sector. Lesaka’s expansion is helping it carve out a stronger market position, but its rising losses highlight the challenge of balancing growth with profitability in Africa’s competitive fintech industry.
