Drake Star Partners acted as the exclusive financial advisor to the selling shareholders of AvaFin

STELLENBOSCH, SOUTH AFRICA | March 13, 2024 – In a strategic move to enhance its position in the digital lending space, Capitec, a leading South African bank, has acquired a controlling stake in AvaFin, a leading B2C online lending platform. The acquisition solidifies Capitec's commitment to providing innovative financial solutions to its customers. Drake Star Partners acted as the exclusive financial advisor to the selling shareholders of AvaFin on this transaction.

Capitec has outlined the key reasons for this acquisition:

Strong culture fit: AvaFin's approach as a small challenger in the market aligns with Capitec's focus on niche solutions and efficient use of technology.
Geographical diversification: AvaFin has expanded its operations from one market to multiple markets, offering online consumer loan products in Poland, Czechia, Latvia, Spain, and Mexico.
Excellent management team: The management team at AvaFin has demonstrated innovation, agility, and responsiveness to changes in various geographical environments. They have successfully navigated challenges such as the COVID-19 pandemic, the Ukrainian crisis, and regulatory changes in their operating countries.

AvaFin is a prominent digital non-bank consumer lender specializing in near-prime and sub-prime loans across five countries. The company operates an integrated business model by applying best-in-class technology, credit operations and marketing capabilities. The company is highly technology-focused, demonstrated by a strong risk and IT development team. Operating on a global scale and being a true international player, Avafin is one of the most trusted online lenders in the sector, providing consumer loans for over 10 years.

Patrick Köck, CEO of AvaFin stated: "Capitec's values align seamlessly with AvaFin's mission, making this acquisition a natural fit for both organizations. The collaboration represents a strategic alignment that will undoubtedly create value for both companies and contribute to the continued evolution of the digital lending sector. Julian Ostertag and the Drake Star FinTech team played a pivotal role in facilitating the transaction by leveraging their extensive market experience, strategic guidance and unwavering commitment to ensure a seamless process.”

"We are pleased to have supported AvaFin on this transaction," said Julian Ostertag, Managing Partner at Drake Star Partners. “AvaFin’s proven track record in online lending, coupled with Capitec's strong financial foundation, positions both companies for continued success and growth in the digital financial services landscape."

The transaction is subject to customary closing conditions and regulatory approvals.

Drake Star Deal team: Julian Ostertag, Michael Metzger, Mohit Pareek, Sebastian Kimmerl, Anton Donauer, Mathieu Gratzmüller, Ruben Gazarian

Inquiries:

For further inquiries, please contact:

Julian Ostertag 

Managing Partner, Member of Global Executive Committee | Drake Star

julian.ostertag@drakestar.com | +49 89 14 90 26 520

Michael Metzger

Managing Partner | Drake Star

michael.metzger@drakestar.com | + 1 310-696-4011

About AvaFin

AvaFin stands as a leading digital non-bank consumer lender, specializing in the provision of near- and sub-prime loans across five countries. The company operates through an integrated business model, emphasizing the utilization of best-in-class technology, efficient credit operations, and robust marketing capabilities. Demonstrating a strong technological focus, AvaFin maintains dedicated risk and IT development teams. As an international player, AvaFin has a presence in six countries and boasts a workforce of over 330 employees. With a history spanning over a decade, the company has solidified its position as a trusted online lender within the sector. AvaFin's expertise lies in delivering consumer loans, showcasing its commitment to providing reliable financial solutions tailored to the evolving needs of its clientele in the digital lending landscape.

About Capitec

Capitec is a leading South African bank that is committed to simplifying banking and improving the financial well-being of its clients through accessible, innovative, and affordable solutions. With a strong focus on technology and customer-centricity, Capitec has consistently demonstrated its dedication to empowering individuals and businesses to achieve their financial goals.

About Drake Star 

Drake Star is an award-winning global tech investment bank that has completed over 500 transactions since 2003. The Drake Star global team of senior professionals across offices in New York, London, Paris, Munich, San Francisco, Los Angeles, Berlin, and Dubai* focuses on mergers & acquisitions and corporate finance services worldwide in Software/SaaS, Consumer & Retail Technology, Digital Media, FinTech, Mobility & Sustainability, Digital Services, and Industrial Tech sectors.

Drake Star is the marketing name for the global investment bank Drake Star Partners Limited and its subsidiaries and affiliates. In the USA, all securities are transacted through Drake Star Securities LLC. In the USA, Drake Star Securities LLC is regulated by FINRA and is a member of SIPC. Drake Star UK Limited (FRN 942020) is an appointed representative of Razlin Ltd (FRN 730805), which is authorized and regulated by the Financial Conduct Authority. © 2024 Drake Star Partners Limited.

For more information, visit www.drakestar.com. 

*Partner Office