FirstRand Group has committed R4.7-billion to buy 20.1% of soon-to-be-listed multinational fintech Optasia.
The deal, announced in a statement on Monday, comes as Optasia eyes a listing on the JSE at a potential valuation north of R20-billion.
“This is a significant investment by FirstRand and reflects strong confidence in Optasia’s model…,” Optasia CEO Salvador Anglada said in the statement.
Optasia is an emerging markets-focused credit-vetting specialist that uses proprietary AI algorithms to determine how much to lend to customers through microloans. It connects to customers through fintech platforms such as MTN Group’s MoMo and Vodacom Group’s M-Pesa, using the balance sheet of licensed banks to disperse funds that Optasia also underwrites in the event of a default.
Optasia’s JSE listing plans were announced earlier this month, with the company saying it plans to raise up R1.3-billion from the sale of ordinary shares, with shareholders also planning to sell around R5-billion in secondary shares that Optasia will not benefit from.
According to Anglada, the funds raised will be used for expansion into new markets, including in East Asia, Kenya, Egypt and Indonesia. Some of the growth will be organic and some could come from strategic acquisitions, he said.
Fintech platform
In a pre-listing statement last week, Optasia confirmed its plans to offer up to 84 million ordinary shares priced between R15.50 and R19/share. A company spokesman said the pricing will put its valuation at between R19.4-billion and R23.5-billion on its JSE debut, provided the shares are not oversubscribed or undersubscribed.
The investment by FirstRand – whose portfolio includes FNB, Rand Merchant Bank, WesBank and DirectAxis – at the higher end of the pricing scale of R19/share signals the financial services giant’s confidence in Optasia’s prospects. Optasia said the investment by FirstRand will not change the size of the IPO as given in the pre-listing statement.
The bookbuilding period for the listing will be extended to 12pm SAST on 30 October, with Optasia expecting to be admitted onto the JSE on 5 November.
In its own statement on Monday, FirstRand described the investment as an “exciting opportunity” to leverage a “proven” fintech platform. FirstRand also plans to leverage the AI capability built by Optasia to drive growth in market segments where FirstRand is underrepresented.
Read: Optasia targets up to R23-billion valuation in JSE debut
“We are excited to acquire this interest in Optasia, which represents a key step in executing our growth strategy to leverage technology platforms to enhance credit capabilities and expand financial access across the continent,” said FirstRand CEO Mary Vilakazi. – © 2025 NewsCentral Media
Get breaking news from TechCentral on WhatsApp. Sign up here.