Pepkor’s Fintech Boom: Revenue Soars to R3.8 Billion Amid Market Share Gains

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As of February 4, 2025, Pepkor Holdings has reported remarkable growth in its fintech segment, with revenue soaring to R3.8 billion.

This surge represents a staggering 35% increase compared to the previous year, highlighting the company’s strategic focus on financial technology services and its ability to capture a larger market share in South Africa.

Strong Financial Performance

In its latest trading update for the three months ending December 31, 2024, Pepkor revealed that total group revenue from continuing operations rose by 12.1% to R26.7 billion.

The impressive performance was driven by robust sales growth across both retail and fintech divisions, with the latter significantly contributing to the overall revenue increase.

The company’s gross profit margin also improved, primarily due to the fintech segment’s expansion.

Key Drivers of Growth

Pepkor’s financial services businesses experienced a remarkable revenue increase of 65.7%, reaching R1.6 billion. This growth was fueled by several strategic initiatives, including enhanced retail credit interoperability and an uptick in cellular handset rentals.

Notably, the activation of 299,000 new A+ retail credit accounts brought the total to three million, demonstrating strong customer engagement and demand for Pepkor’s financial products.

The company’s FoneYam initiative, which offers smartphone rentals, has also seen significant traction, increasing its active customer base to 1.2 million by December 2024.

Monthly activations reached an impressive 180,000 devices in December alone, underscoring Pepkor’s commitment to enhancing digital access across underserved markets.

Market Share Gains

In addition to fintech growth, Pepkor has successfully increased its market share in traditional retail sectors. The group now sells seven-and-a-half out of every ten prepaid smartphones in South Africa, a notable improvement from seven in the previous year.

This achievement is attributed to Pepkor’s strategic focus on affordability and quality across its brands, including PEP and Ackermans.

The CEO of Pepkor Holdings emphasized the importance of digital inclusion and accessibility in driving the company’s success. The group’s efforts have not only supported economic activity but have also enhanced educational and health services in rural areas.

Looking Ahead

Pepkor remains optimistic about its future prospects as it continues to adapt and innovate within a challenging economic landscape.

The company anticipates that improving economic indicators—such as declining food inflation and a more stable electricity supply—will further bolster consumer confidence and spending power.

In summary, Pepkor’s fintech boom is a testament to its strategic initiatives and commitment to enhancing customer experience through innovative financial solutions while maintaining strong growth in traditional retail markets.

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