South Africa’s Araxi Acquires Fintech Pay@ for $62m to Consolidate Regional Payments
In a significant consolidation of the Southern African fintech space, JSE-listed Araxi Limited (formerly Capital Appreciation Limited) has agreed to acquire an 80% stake in Pay@ Group for R1bn ($62.3m).
The deal, executed through Araxi’s subsidiary African Resonance, marks a pivot toward creating an end-to-end payments giant that bridges the gap between physical retail networks and digital cloud-based infrastructure.
The Deal at a Glance
- Acquirer: Araxi Limited (via African Resonance).
- Target: Pay@ Group (80% stake) and International Payment Holdings Limited (IPHL).
- Price Tag: R1bn ($62.3m).
- Funding Structure: R200m from cash reserves; R800m in committed senior debt.
- Strategic Shift: The acquisition “repatriates” Pay@, buying out a 40% stake previously held by a US private equity firm to ensure 100% South African ownership.
Why Pay@? The “Boring” Fintech That Actually Makes Money
While many fintech headlines focus on high-burn startups, Pay@ is a veteran. Founded in 2007 in Stellenbosch by Johan Koornhof, the company has spent nearly two decades building the “plumbing” for South Africa’s bill payment ecosystem.
