Business

Major retailer in South Africa to create new R21.3 billion giant

Luke Fraser

 ·22 Jul 2026

Pepkor plans to merge its Flash business with Shop2Shop to create one of the largest fintech platforms in South Africa, valued at R21.3 billion.

Flash is a value-added services distribution network and a fintech platform for digital products.

Shop2Shop is a leading merchant-focused trade enablement fintech platform that provides merchants with acquiring, payments, cash management, and trade services.

The two companies already have a long-standing relationship and are expanding their reach across the informal market value chain, unlocking strategic and operational synergies.

Pepkor will acquire a 57.1% stake in the new FintechCo via a cash purchase subscription of R1.57 billion for new shares in Shop2Shop.

It will also contribute 100% of its shares in Flash, valued at R10.6 billion. The total equity value of FinTechCo is about R21.3 billion.

Pepkor said the transaction is a major step in line with its strategy to accelerate expansion within its Informal Market Platform segment.

It also plans to unlock value for shareholders through a planned listing in the medium term.

It added that FintechCO will enhance its retail-powered consumer platform, which spans 32 million known customers.

This will be done by deepening customer and merchant engagement and increasing
participation in everyday commerce.

Shop2Shop’s merchandising and payment network capabilities will also be combined with Flash’s VAS and digital product set capabilities to create an integrated platform with greater scale, reach, and relevance.

“Shop2Shop was founded to bring purpose-built solutions to South Africa’s large and underserved informal merchant market, to empower small business owners,” said Peter Berry, founder of Shop2Shop.

“We’ve built a broad product set on a platform engineered for high-volume, low-cost transactions. With Flash, we are able to deepen our offering and scale, and position a proven fintech platform in South Africa.”

The proposed transaction is also expected to build a pathway to unlocking shareholder value, with a planned separate listing of FintechCo in the medium term.

Pepkor’s CEO Pieter Erasmus holds an indirect minority interest through an associated company, which pre-dated his appointment at the group.

After the deal is completed, Pekor will hold 57.1%, and S2S Shareholders will hold the remaining 42.9%.

Companies related to Peter Berry and Erasmus will hold minority interests in FintechCo of 24.0% and 13.2%, respectively, with the balance held by Shop2Shop group employees