South Africa’s FirstRand Bank has acquired a 20% stake in UAE-based fintech company Optasia for approximately $70 million, marking a strategic move ahead of Optasia’s planned listing on the Johannesburg Stock Exchange (JSE).
The investment aims to strengthen Optasia’s expansion across Africa and fund its next phase of growth.
“Optasia’s ability to pre-score customers, process microloans at scale, and use mobile data sales as a credit collection mechanism is highly innovative,” FirstRand said in a statement. “It is clearly meeting the needs of millions of customers in 38 countries across Africa, the Middle East, and Asia.”
Optasia, which partners with major telecom operators such as MTN, Vodacom, and Standard Bank in South Africa, provides microcredit and digital financial services to underbanked populations who lack access to traditional banking.
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According to Business Insider Africa, FirstRand, the parent company of FNB, RMB, and WesBank, said it intends to leverage Optasia’s technology to support its own digital expansion across underserved African markets and create tailored financial products for entry-level clients.
Earlier in October, Optasia announced plans to raise around $68 million through its JSE debut to support organic growth and acquisitions. The company also confirmed a secondary share sale worth $261 million through private placement, though it will not directly receive proceeds from that offering.
By aligning with Optasia’s data-driven model, FirstRand joins a growing number of African banks investing in fintech innovation to tap into the continent’s 350 million unbanked adults, widely regarded as the next major frontier for financial inclusion and digital banking growth.
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Image Credit: The Kenyan Wall Street
