Lesaka Technologies, a pioneering fintech group in Southern Africa, has just revealed promising financial results for the year ending June 30, 2024. The company’s revenue increased by an impressive 11%, reaching R10.6 billion (about 5 million), showcasing its effective strategies and robust growth trajectory.
In a bid to further consolidate its position in the fintech landscape, Lesaka recently acquired Adumo, a leading payments services provider, in a landmark R1.59 billion (.9 million) deal. This acquisition not only enhances Lesaka’s service offerings but also positions them favorably within the competitive market. Formerly known as Net1 UEPS Technologies, Lesaka is listed on both the Johannesburg Stock Exchange and NASDAQ, making it a key player in the financial technology sector.
Perhaps most notable is the turnaround in Lesaka’s profitability. After experiencing a setback with a R275 million loss in the previous financial year, the company bounced back, achieving a profit of R67 million for FY 2024. This is a significant transformation, underscored by a 55% increase in adjusted earnings before interest, taxes, depreciation, and amortization (EBITDA), which reached R691 million.
The company’s chairman, Ali Mazanderani, expressed optimism about the future, stating, “We have carried this momentum into FY 2025 and are providing a guidance range of R900 million to R1 billion. We have established ourselves as the leading independent fintech in Southern Africa, with significant room for increased growth and profitability over the coming years.” This forward-looking statement hints at exciting possibilities for Lesaka and its stakeholders.
Lincoln Mali, the CEO of Lesaka Southern Africa, echoed this sentiment, particularly with regard to their consumer division which saw a remarkable four-fold increase in segment adjusted EBITDA to R274 million. “We are entering an exciting period of growth for Lesaka,” Mali noted, alluding to the integration of Adumo and Touchsides into their existing suite of fintech solutions aimed at empowering Southern African consumers and merchants.
With the anticipated closing of the Adumo acquisition this October, Lesaka has revamped its operational structure into four distinct pillars focusing on customer engagement. The consumer pillar will integrate Adumo’s Payouts business, allowing the company to reach approximately 1.7 million consumers. The micro-merchant sector, targeting sole proprietors primarily in the informal economy, boasts over 90,000 micro-merchants contributing to significant annual throughput. Additionally, the merchant and enterprise pillars will address the needs of existing connect operations, large corporates, and essential services like financial institutions and municipalities.
To support this ambitious growth, Lesaka’s leadership structure is being realigned. Naeem Kola will transition from group CFO to group COO, focusing on operational synergy across business units, while Dan Smith takes over as the new group CFO after a successful tenure at Value Capital Partners.
With these developments, Lesaka Technologies is poised to continue its upward trajectory, solidifying its status as a formidable force in the fintech landscape of Southern Africa. Stay tuned for what’s next!
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