Pepkor Holdings has announced the combination of its wholly owned fintech subsidiary, Flash, with Shop2Shop to create one of South Africa’s largest merchant commerce and fintech platforms, with annual transaction throughput exceeding R200 billion.
Following the transaction, Pepkor will hold a controlling 57.1% stake in the combined business, FintechCo. The deal implies a total equity valuation of approximately R21.3 billion and is expected to unlock significant strategic and operational synergies while supporting Pepkor’s long-term fintech ambitions.
The new platform brings together complementary businesses serving South Africa’s fast-growing informal economy. Shop2Shop has built a broad merchant acquiring and payments network with strong upstream capabilities, while Flash has established a leading downstream platform for value-added services (VAS), digital products and financial services. Together, the businesses will provide integrated solutions spanning cash handling, payments, merchant services and financial products for informal traders.
Pepkor to Combine Flash and Shop2Shop in R21.3 Billion Fintech Deal
South Africa’s informal economy continues to expand, driven by resilient consumer demand and increasing merchant participation, creating significant opportunities for digital financial services providers.
