JSE-Listed Araxi Acquires Pay@ Group
- Talita Clarke
- 2 days ago
- 2 min read
Transaction Tuesdays With Talita
On 18 February 2026, the JSE-listed fintech group Araxi Limited (formerly known as Capital Appreciation Limited) announced its intentions to acquire an 80% stake in the Pay@ Group for a total consideration of R1 billion. The transaction, facilitated through Araxi's wholly-owned subsidiary, African Resonance, marks a significant consolidation in the South African payments landscape, moving the target company toward full local ownership by buying out a US private equity firm.
Araxi Limited is a prominent South African provider of payment and software solutions to enterprise clients, particularly within the retail and financial services sectors. Formerly operating as Capital Appreciation Limited, the group rebranded to Araxi in 2025 and owns established brands such as African Resonance, Dashpay and Synthesis. Its operations are focused on enabling digital finance through contemporary technology, including cloud services, artificial intelligence and agentic implementations. The company has a history of driving growth through a combination of strong organic performance and strategic acquisitions.
Pay@, founded in 2007, is a leading provider of end-to-end B2B integrated payment solutions with significant B2C capabilities. It operates one of Southern Africa’s most extensive payment networks, boasting over 9,000 retailer locations, 150,000 mobile Point of Sale endpoints and 15 digital payment platforms. The group specialises in bill payment aggregation, allowing consumers to pay utilities, insurance premiums and traffic fines via cash, card or digital wallets. In the 12 months leading up to the announcement, Pay@ processed more than R60 billion in transaction value, generated revenue of of R271.2 million and maintained a 99.99% system efficacy rate.
The R1 billion acquisition is structured as a cash-settled deal, funded by R200 million from Araxi’s existing reserves and R800 million in committed senior debt. The purchase price is allocated as R975 million for Pay At Holdings and R25 million for its affiliate, International Payment Holdings Limited (IPHL). The deal originated from Araxi's strategy to acquire cash-generative, asset-light businesses with proven user acceptance and significant growth potential.
Subject to necessary regulatory and shareholder approvals, the acquisition is expected to be finalised by the end of June 2026. It represents a strategic move to create an integrated payments powerhouse by merging two entities with almost no product overlap. This partnership will drive innovation by applying Araxi’s AI and cloud expertise to Pay@’s e-commerce and SaaS offerings, whilst leveraging IPHL in Mauritius as a gateway for expansion into African and international markets. Furthermore, the deal ensures 100% South African ownership of Pay@ and mandates that profits are reinvested locally to support the domestic economy.
This merger represents a strategic leap for Araxi Limited, effectively doubling down on its presence in the global payments ecosystem. By uniting Pay@’s vast physical infrastructure with Araxi’s advanced digital capabilities, the group is positioned to deliver a unique, end-to-end fintech proposition. With a debt-free target, strong transaction volumes and a committed management team staying on board, the deal sets a new benchmark for scaled fintech platforms in Southern Africa.
The official announcements can be viewed below:
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