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. <\/p>\n\n\n\n
Flash is a value-added services distribution network and a fintech platform for digital products.<\/p>\n\n\n\n
Shop2Shop is a leading merchant-focused trade enablement fintech platform that provides merchants with acquiring, payments, cash management, and trade services.<\/p>\n\n\n\n
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.<\/p>\n\n\n\n
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. <\/p>\n\n\n\n
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. <\/p>\n\n\n\n
Pepkor said the transaction is a major step in line with its strategy to accelerate expansion within its Informal Market Platform segment. <\/p>\n\n\n\n
It also plans to unlock value for shareholders through a planned listing in the medium term.<\/p>\n\n\n\n
It added that FintechCO will enhance its retail-powered consumer platform, which spans 32 million known customers. <\/p>\n\n\n\n
This will be done by deepening customer and merchant engagement and increasing
participation in everyday commerce.<\/p>\n\n\n\n
Shop2Shop’s merchandising and payment network capabilities will also be combined with Flash\u2019s VAS and digital product set capabilities to create an integrated platform with greater scale, reach, and relevance.<\/p>\n\n\n\n
\u201cShop2Shop 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.<\/p>\n\n\n\n
“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.\u201d<\/p>\n\n\n\n
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. <\/p>\n\n\n\n
Pepkor’s CEO Pieter Erasmus holds an indirect minority interest through an associated company, which pre-dated his appointment at the group.<\/p>\n\n\n\n
After the deal is completed, Pekor will hold 57.1%, and S2S Shareholders will hold the remaining 42.9%. <\/p>\n\n\n\n
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<\/p>\n\n\n\n Pepkor plans to merge its Flash business with Shop2Shop to create one of the largest fintech companies in South Africa. <\/p>\n","protected":false},"author":95,"featured_media":834608,"comment_status":"open","ping_status":"closed","sticky":true,"template":"","format":"standard","meta":{"_sma_x_autopost_status":"posted","_sma_x_autopost_error":"","_sma_x_post_id":"2079824022271901764","_sma_x_attempts":1,"footnotes":""},"categories":[9872],"tags":[4076],"class_list":["post-867040","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-business","tag-pepkor"],"_links":{"self":[{"href":"https:\/\/businesstech.co.za\/news\/wp-json\/wp\/v2\/posts\/867040","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/businesstech.co.za\/news\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/businesstech.co.za\/news\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/businesstech.co.za\/news\/wp-json\/wp\/v2\/users\/95"}],"replies":[{"embeddable":true,"href":"https:\/\/businesstech.co.za\/news\/wp-json\/wp\/v2\/comments?post=867040"}],"version-history":[{"count":5,"href":"https:\/\/businesstech.co.za\/news\/wp-json\/wp\/v2\/posts\/867040\/revisions"}],"predecessor-version":[{"id":867050,"href":"https:\/\/businesstech.co.za\/news\/wp-json\/wp\/v2\/posts\/867040\/revisions\/867050"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/businesstech.co.za\/news\/wp-json\/wp\/v2\/media\/834608"}],"wp:attachment":[{"href":"https:\/\/businesstech.co.za\/news\/wp-json\/wp\/v2\/media?parent=867040"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/businesstech.co.za\/news\/wp-json\/wp\/v2\/categories?post=867040"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/businesstech.co.za\/news\/wp-json\/wp\/v2\/tags?post=867040"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}Financials<\/strong><\/td> Flash12 months for the 12 ended September 2025<\/strong><\/td> Shop2Shop for 12 months ended June 2025<\/strong><\/td><\/tr><\/thead> Revenue – Rm<\/strong><\/td> 11 152<\/td> 9 327<\/td><\/tr> 3-Year CAGR %<\/em><\/strong><\/td> 9%<\/td> 28%<\/td><\/tr> EBITDA – Rm<\/strong><\/td> 900<\/td> 661<\/td><\/tr> 3-Year CAGR %<\/em><\/strong><\/td> 28%<\/td> 85%<\/td><\/tr> Profit after tax – Rm<\/strong><\/td> 488<\/td> 385<\/td><\/tr> Net asset value – Rm<\/strong><\/td> 657<\/td> 521<\/td><\/tr><\/tbody><\/table><\/div><\/figure>\n\n\n\n
\n","protected":false},"excerpt":{"rendered":"