A Look at Patrice Motsepe’s most recent Tech Startup acquisitions

Posted on April 30th, 2018
Tech

Patrice Motsepe is arguably one of the most accomplished businessmen in South Africa. The billionaire who earned his wealth largely in the mining sector, has recently been looking towards tech.

Motsepe launched his investment company, African Rainbow Capital (ARC), in 2016, its portfolio of investments spans a variety of industries, including mining, telecommunications, agriculture, property and financial services.

One of Motsepe’s most recent acquisitions, made through ARC  is Tyme Digital by Commonwealth Bank, a newly licensed digital bank which is set to launch this year.  It currently operates the money-transfer service, Money Transfer and has secured more than 200,000 customers for the service.

ARC also has a 20% shareholding in mobile network operator Rain, its largest asset.

In a statement from 2017, African Rainbow co-CEO Johan van Zyl said all their investments focus on South African and African businesses that deliver “exceptional returns on equity”.

According to a Moneyweb article, Rain’s acquisition signals ARC’s appetite for market disruptors.

Motsepe is looking to the future for his investments. Here are more companies the billionaire has invested in.

Rain

What-You-Should-Know-About-The-StarRain is South Africa’s first data-focussed mobile network operator. In 2017 ARC announced that it had acquired 20% of the company.

Rain is building a national broadband network using 4G+ or LTE-Advanced technology. It also offers fixed-wireless 4G+ wireless broadband services through a number of Internet service providers. Its competitors are mobile networks Vodacom and MTN.

Launched by former FNB CEO Michael Jordaan, Rain has been lauded for its disruptive potential in the local telecommunications sector.

Former OUTsurance CEO Willem Roos resigned from the insurance brand to join a Stellenbosch-based 4G+ mobile startup. The startup has been lauded for

TymeDigital

Tyme Digital logo 500 x 330TymeDigital by Australia’s Commonwealth Bank is a newly licensed digital bank which became the first new bank to receive an operating license from the South African Reserve Bank since 1999.

ARC acquired 10% of TymeDigital from Commonwealth Bank in 2017.

TymeDigital is expected to become a full-service digital bank.

The bank will be punching above its weight, entering the retail banking market dominated by the country’s five biggest banks: Standard Bank, FirstRand, Barclays Africa, Nedbank and Capitec Bank.

“We believe that TymeDigital will not only transform the banking landscape but will fundamentally change how South Africans consume banking products and services,” CEO Sandile Shabalala said in an interview with Reuters.

It currently operates the money-transfer service, Money Transfer, in partnership with Pick n Pay and Boxer stores and has secured more than 200,000 customers for the service.

A2X

A2X Logo 500 x 330A2X Markets (A2X) is South Africa’s newest stock exchange and competes directly with the JSE and provides an alternative platform for companies to secondary list and trade their shares.

In 2017 A2X made its debut with three listings and four of the industry’s leading brokers on board.

In the same year, ARC acquired 20% of the company.

Stockbrokers RMB Morgan Stanley, Peregrine Securities, Investec Securities and Avior Capital Markets have been approved while Nedbank Securities, SBG Securities and Sinayo Securities have applied and look set to follow shortly.

Huge Group Limited’s shares have also been approved for listing on A2X Markets from 10 April 2018. Huge is the first telecommunications company to list on exhange.