Investment group buys into SA peer-to-peer lending firm RainFin

RainFin and the LeBashe Investment Group have concluded a transaction for the latter to acquire a 30% stake in RainFin, for an undisclosed amount.

Barclays Africa (Absa) originally acquired a 49% stake in the peer-to-peer lending firm in 2014, however, in late 2016, the company’s founders and directors said that they would buy that stake back.

Also known as crowd-lending, RainFin matches people looking for loans, with ‘investors’ looking to provide these funds and benefiting from an agreed rate of return.

“After reviewing a host of investment opportunities, we think that there is an excellent strategic fit between RainFin’s unique value proposition and potential to scale, and LeBashe’s vision to build a pre-eminent black owned financial services business, which is accessible to all,” said Warren Wheatley, spokesperson for The LeBashe Investment Group.

LeBashe, led by Tshepo Mahloele, Jabu Moleketi and Warren Wheatley, has a diversified portfolio made up of stakes in Capitec, a leading South African commercial bank and Aluwani Capital, an asset management entity – amongst others.

As at the end November, LeBashe’s asset position stood in excess of R3.5 billion.

Sean Emery, RainFin CEO said: “This transaction and the collective experience of Tshepo, Jabu and Warren, strengthens RainFin’s leadership position in financial services disruption within the lending industry. Furthermore, the transaction enhances RainFin’s capabilities for expansion and will allow us to accelerate our organic growth strategy in the high potential markets of Africa. ”

LeBashe is 100% black owned and managed, which results in RainFin’s direct black ownership increasing to 41%.

Read: SA crowd-funding site launches R100 million loan facility for corporates

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Investment group buys into SA peer-to-peer lending firm RainFin