Pepkor said the merged Flash-Shop2Shop platform could be listed within three years, giving shareholders a path to unlock value from the new R21.3 billion FintechCo.
R200 billion in annual throughput underpins the deal, which combines Flash’s downstream digital services with Shop2Shop’s merchant payments and cash-management network across South Africa’s informal economy.
Pepkor will own about 57.1% of FintechCo after paying R1.57 billion cash for new Shop2Shop shares and contributing Flash at a R10.6 billion valuation; it plans to keep 55% to 60% after listing.
177,000 informal traders already use Shop2Shop, and Pepkor said the merger should be earnings accretive from year two while targeting roughly a 40% post-synergy internal rate of return.
Regulatory and competition approvals are still required, but Pepkor casts the transaction as a step toward a broader fintech ecosystem and eventually a nationwide digital bank.
In July 2026, Flash and Shop2Shop announced a strategic merger, combining their strong histories of revenue and earnings growth to form FintechCo. This new entity brings together the strengths and market reach of both companies, aiming to become a major player in the financial technology sector. By integrating their operations, FintechCo expects to boost efficiency and expand its service offerings. The merger is currently awaiting regulatory approval, after which the full integration of Flash and Shop2Shop will create a powerful business ready to transform the fintech landscape.