Pepkor Holdings will merge its Flash fintech business with rival platform Shop2Shop. The deal creates a combined entity, temporarily named FintechCo, valued at R21.3 billion ($1.29 billion).
Pepkor will hold a 57.1% controlling stake in the new business. The group is contributing its Flash shares alongside a R1.57 billion cash investment.
The platform targets South Africa’s informal economy, which is estimated to be worth R1 trillion. The merger unites Flash’s network of 176,000 traders with Shop2Shop’s merchant-focused services.
Pepkor plans a future public listing for the entity to unlock shareholder value.