Capitec Bank, a strategic investor of AvaFin, has acquired a controlling interest in the company. In a EUR 26.3 million transaction, Capitec Bank has increased its stake in AvaFin from 40.66% to 97.69%. AvaFin’s management will retain the remaining shares in the business, in line with Capitec’s philosophy of management ownership.
The transaction marks another significant milestone for AvaFin, which began its journey in 2012 as a startup in Latvia. Since then, it has experienced rapid growth, expanding its operations across Poland, Czechia, Spain, and Mexico. In 2017, the company was recognized as the second-fastest growing company in Europe by Inc Magazine, and in 2020, it was listed as a top startup to follow by the Financial Times. As part of its ongoing evolution, the group is in the final stages of a rebranding project, transitioning from local brands to a unified global brand, AvaFin.
For Capitec Bank, which started also as a microfinance institution, this move represents another milestone in its growth journey. The acquisition of AvaFin Group, its first foreign subsidiary, aligns with the bank’s ambition to expand beyond the domestic market in South Africa.
Partnering with Capitec Bank will provide AvaFin with the resources and reach to expand its market presence and scale up its operations, leveraging synergies to grow its footprint in the consumer lending space.
