South African neobank Fin has announced its acquisition of Thuthukani, a Pretoria-based fintech startup as part of its expansion efforts.
Through the acquisition, Thuthukani’s incremental housing finance offering will be renamed to Fin Home Loans and integrated into Fin’s South African portfolio with a mandate to give middle to lower-income Fin customers access to affordable finance.
According to a statement by the neobank, Fin is continually identifying partners in different sectors with this need, and as such, the Thuthukani acquisition is an extension of this strategy.
“The leadership of Thuthukani has done an excellent job in building up a needed development housing finance offering for the South African market. Under the product name Fin Home Loans and as part of our wide portfolio of consumer & SME finance products, we will expand the service’s distribution and options as we look to leverage and expand housing finance to other regions,” said Timothy Nuy, co-founder and co-CEO of Fin.
For Thuthukani, the acquisition presents a good opportunity to scale within Fin’s ranks.
“I could not be more excited about integrating Thuthukani into Fin; this enables us to scale the business and bring our offering to many more people. I am also keen to explore all the synergies within the wider portfolio,” said Mark Seymour, founder of Thuthukani.
Fin, formerly known as Finclusion Group, raised a total of $22 million over two funding rounds in 2022 to build Africa’s first credit-led neobank. It is currently present in South Africa, Tanzania and Kenya.
“Our latest South African acquisition, as well as the continued integration of a wide range of products into our neobanking platform, displays our strong ambition. We want to be the trusted provider to our customers throughout the continent for whatever they need financially to improve their lives and grow their business,” added Tonderai Mutesva, co-founder and co-CEO of Fin.