JSE-listed financial services group FirstRand announced an agreement to acquire 20.1% of Optasia, one of the world’s largest AI-powered fintech platforms providing financial access to people across emerging markets.
The group is acquiring this strategic investment concurrent with Optasia’s IPO which is in progress.
FirstRand believes that this investment in Optasia represents an exciting opportunity to leverage a proven fintech platform that has a successful track record of solving the lending needs of underbanked or unbanked consumers, practitioners and micro enterprises which have had difficulty accessing traditional credit products.
Optasia’s ability to pre-score customers, process micro loans at scale and use mobile data sales as a credit collection mechanism is highly innovative and is clearly meeting the needs of millions of customers in 38 countries across Africa, the Middle East and Asia.
Ultimately Optasia offers FirstRand access to these new markets and new customers, which would be challenging to acquire organically and provides the group with geographic expansion opportunities in key emerging markets.
FirstRand believes that its retail and business bank FNB will be in a strong position to leverage the proprietary technology and AI capabilities of the Optasia platform to accelerate its own strategy to grow in segments in South Africa where it is underrepresented and markets in its broader Africa portfolio.
Mary Vilakazi, CEO of FirstRand, commented: “We are excited to acquire this interest in Optasia which represents a key step in executing our growth strategy to leverage technology platforms to enhance credit capabilities and expand financial access across the continent.”
This investment provides Optasia with the long-term commitment of a respected financial institution, bringing valuable institutional and partnership support for the Company’s next phase of growth. At the same time, it offers FirstRand exposure to the strong competitive advantages that have established Optasia as one of the largest and fastest-growing AI-driven fintech platforms expanding financial inclusion across emerging markets.
“This significant investment by FirstRand, one of South Africa’s leading financial institutions, reflects strong confidence in Optasia’s model and in the impact we are creating,” said Salvador Anglada, Optasia’s Chief Executive Officer.
“For over a decade, we have been driving financial inclusion across emerging markets, using AI and data to unlock access to credit and essential financial services for millions of people.
“As we move towards our listing on the JSE, this strategic investment marks another milestone in our journey – strengthening our foundation for long-term value creation and inspiring us to keep innovating for even greater impact. We are excited to welcome FirstRand as an investor in this next chapter for Optasia.”
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It’s not often a columnist gets to say, “I told you so”, while watching predictions unfold with such compelling force. Back in February 2022, I argued in this very space that fintech was becoming the new airtime, the lifeblood for telecom giants like MTN and Vodacom.
I suggested then that it would be a prudent move for them to acquire emerging fintech platforms.
