Capitec Announces The Acquisition Of A Controlling Interest In Avafin
Capitec Announces The Acquisition Of A Controlling Interest In Avafin. The Prudential Authority of the SA Reserve Bank has approved a transaction for Capitec to increase its shareholding in Avafin Holding Limited (“Avafin”), an international online consumer lending group, from 40.66% to 97.69% at a purchase price of €26.3 million.
The acquisition of a minority interest in Avafin in 2017 provided Capitec with the opportunity to gain experience in the international online consumer credit market, management of operations and risk in foreign markets and international diversification of Capitec’s income sources. Avafin management will continue to hold the residual interest in the business, in line with Capitec’s philosophy of management ownership.
Key reasons for acquiring the controlling interest in Avafin:
• Strong culture fit – Avafin is a small challenger, taking on large market leaders by focusing on niche solutions for clients through the efficient use of a sophisticated, scalable, technology driven online consumer credit platform and sound credit risk management principles.
• Geographical diversification – The business model developed from a high dependency on a single market to successful operations in multiple markets. Avafin provides online consumer loan products in Poland, Czechia, Latvia, Spain and Mexico.
• Excellent management team – Management and staff are innovative with a pragmatic approach and responsive to changes in the diverse geographical environments in which they operate:
– The business has developed successfully despite multiple challenges including Covid-19, the Ukrainian crisis and regulatory changes in a number of countries where Avafin operates.
– Avafin is agile and management has a proven track record for timely identification and swift implementation of necessary changes to its systems, processes and credit risk appetite.
-The efficiency in adapting and managing change has led to improvements in Avafin’s competitive position and market share after overcoming each of the above challenges.
AvaFin is an international Fintech group, operating since 2012. The company is utilizing a state-of-the-art financial solutions technology platform to provide convenient loan products with minimal time-to-cash and maximum customer convenience. The company provides convenient loan products to consumers in 5 markets: Poland, Spain, Mexico, the Czech Republic, and Latvia, holding leading positions in each of these markets.
