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BLACKLEAF

Project Mega

SKU BLW-PM-0211
Price

R800 000 000,00

Overview

Project Mega is a leading national microfinance group operating across all nine provinces in South Africa with 57 branches, a loan book valued at R482 million (Dec 2023), and over 50,000 active clients. The group comprises three distinct companies, offering lending, insurance, debt collection, financial education, and financial wellness services to a diversified and loyal customer base.

The business is positioned as a top-tier microfinance brand with one of the largest physical footprints in the sector and is fully accredited as a Financial Services Provider and Registered Credit Provider.

 

Transaction Structure

  • Equity Available: Up to 100% of the ordinary shares

  • Transaction Type: Share sale

  • Reason for Sale: Strategic disposal by the current shareholder

  • Advisory Mandate: Sole mandate held by BlackLeaf Advisory & Partner 

 

Group Composition

  • Company A provides personal unsecured loans via payroll and non-payroll models, alongside insurance products underwritten by Guardrisk. These include credit life, funeral, and education policies. The business also offers group financial education services to employers. The client base includes 50,707 active borrowers with 69,471 live loans and 42,537 funeral policyholders.
  • Company B is the internal and third-party debt recovery operation. It handles bespoke collections from early-stage to pre-legal across a diverse loan portfolio. The team processes over 6,000 loan recoveries monthly, ensuring optimal recoveries and liquidity support for the lending business.
  • Company C focuses on financial wellness and behavioural coaching for employees. Services include financial needs analysis, one-on-one coaching, financial literacy training, and wellness reporting. Over 1,000 learners have completed wellness programs through employer partnerships.

 

Geographic Footprint
Project Mega has a physical presence across all nine provinces through 57 strategically located branches. The group’s infrastructure enables deep penetration in both urban and rural markets, with its primary operations headquartered in Gauteng.

 

Financial Summary (YTD 2024)
The group has recorded R314.4 million in revenue and R80.5 million EBITDA over the first 10 months of FY2024. The loan book has grown steadily from R248 million in FY2019 to R482 million, reflecting a compound annual growth rate of approximately 15%.

 

The net asset value of Company B has grown from R842,000 in FY2021 to R2.99 million, while Company C increased from R235,000 in FY2022 to R1.66 million, indicating strong subsidiary-level performance.

 

Client Base & Target Market
Project Mega serves low-to-middle-income clients across government, retail, manufacturing, and service sectors. Most customers are formally employed and engaged via payroll integration. The business also serves employer clients seeking group risk products and financial wellness programs.

 

Key Investment Highlights

  • One of the five largest branch networks in South Africa’s microlending sector.

  • Fully licensed financial services and credit provider.

  • High-growth loan book with consistent repayment activity.

  • Diversified income streams across lending, insurance, and wellness.

  • Recurring revenue model with strong customer retention.

  • Strong EBITDA performance with low capital reinvestment requirements.

  • Management team with proven execution across lending and recovery.

  • Opportunity to scale into a full-spectrum financial services group.

All Listings are legally authorized and under representation by BlackLeaf Advisory Group (Pty) Ltd. BlackLeaf Business Marketplace is a division of BlackLeaf Advisory Group.

Disclaimer

All information presented in this listing has been provided directly by the seller or their appointed representatives. BlackLeaf Advisory has conducted preliminary due diligence and confirms that, to the best of our knowledge at the time of listing, the information is accurate, complete, and reflective of the company’s operational and financial standing.

However, BlackLeaf Advisory makes no representations or warranties, express or implied, as to the ongoing accuracy, completeness, or fitness for any particular purpose of any information contained herein. Certain details may have changed since the time of listing, and additional material facts may be discovered during the course of a formal legal, financial, or operational due diligence process.

BlackLeaf Advisory shall not be held liable for any losses, damages, or claims arising directly or indirectly from the use, reliance, or interpretation of any information included in this listing. It remains the sole responsibility of the prospective buyer to conduct their own independent due diligence and to obtain appropriate legal, tax, and financial advice prior to any transaction.

By engaging with this listing, all parties acknowledge and accept the above conditions.



 

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