South African Fintech Araxi Acquires Pay@ Group for $62.3 Million in Rare African Exit
A South African fintech company completed one of Africa's largest technology exits this week, signaling continued consolidation in a market where successful acquisitions remain relatively scarce.
Araxi, a cloud and AI-focused payments company, acquired an 80% stake in Pay@ Group for $62.3 million, according to industry publication This Week in Fintech. The deal combines Araxi's cloud infrastructure and point-of-sale capabilities with Pay@'s network of more than 9,000 retail payment points and 150,000 mobile users across South Africa.
For finance leaders tracking African fintech, the transaction stands out less for its size than for its rarity. While African fintech has attracted significant venture capital over the past several years, successful exits—whether through acquisition or public listing—remain uncommon. The Araxi-Pay@ deal represents one of the few substantial liquidity events in the sector this year, coming as development capital has reportedly slowed financing for Africa's venture boom.
The acquisition arrives amid broader activity in African financial technology. During the same week, Moroccan embedded finance platform WafR raised $4 million in new funding to scale its operations, while Kenyan fintech lender Mogo secured $6.2 million in local debt financing. The Dutch Good Growth Fund also announced an investment in First Circle Africa Fund I, an Africa-focused fintech investment vehicle.
The timing may prove significant for CFOs at African fintechs navigating tighter capital markets. With venture funding reportedly slowing, strategic acquisitions like the Araxi-Pay@ deal could become a more attractive exit path for founders and investors who previously anticipated growth-stage financing rounds or eventual public offerings.
Elsewhere in the sector, Nigerian investment platform Risevest secured a Fund and Portfolio Manager license from the country's Securities and Exchange Commission, expanding its regulatory permissions in Africa's largest economy. Grey, another Nigerian fintech, launched "Grey Business," a new product line aimed at simplifying global payments for African startups and small-to-medium enterprises.
The week's developments also included personnel moves, with M-Pesa Africa's CEO drawing attention as a potential key figure in Absa's efforts to compete in mobile banking. M-Pesa, the mobile money platform that launched 17 years ago, remains a dominant force in African digital payments.
The Araxi-Pay@ transaction's structure—an 80% acquisition rather than a full buyout—suggests the sellers retained a meaningful stake, a common arrangement in markets where founders and early investors seek both liquidity and continued upside. For acquirers, partial purchases can ease financing requirements while maintaining seller motivation.
What remains unclear is whether this deal represents an inflection point or an isolated event. African fintech has long promised consolidation as smaller players struggle with unit economics and regulatory complexity, but actual M&A activity has lagged predictions. The $62.3 million price tag, while substantial for the region, pales compared to fintech valuations in more mature markets—a gap that could either attract opportunistic buyers or discourage sellers hoping for premium exits.
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