The FinTech business of retailer Pepkor, previously Steinhoff Africa Retail, continues to report strong growth.
Pepkor informed investors today that its FinTech business increased revenue by 3.1% to R4.5 billion for the six months ended 31 March 2021.
The company operates its FinTech division through FLASH and Capfin.
Pepkor said revenue growth momentum in the FLASH business continued at double-digits as it invests in new products, channels and geographies.
The FLASH business has enabled people in townships and rural areas to start their own businesses using FLASH Business devices while existing shop owners are able to increase their business by offering multiple services to bring more feet into their shops.
A Flash Shop can be a Spaza shop in your township or village. FLASH is a tech company that enables small business owners to offer affordable payment options.
It is now the largest informal retail network in Africa supported by its dedicated field staff that are active across the country.
It also uplifts their traders and creates a safe, secure, and convenient way for people to get what they need without having to travel into town.
Pepkor further said that reduced credit granting and lower interest rates impacted revenue growth in the Capfin unsecured lending business.
The gross Capfin credit book reduced to R1.9 billion from R2.6 billion on 31 March 2020 with collections improving marginally on the comparable period, said Pepkor.
Capfin was founded in 2010 with a vision to provide customers with affordable loan products and services. It has partnered with PEP and Ackermans to provide convenient and reliable services to customers.
Pepkor, which is a subsidiary of JSE-listed Steinhoff, owns clothing retailers Pep and Ackermans, furniture stores such as Bradlows, Russells and Incredible Connection.
Pepkor reported that revenue from continuing operations rose by 8.1% to R36.5 billion for the six months ended 31 March 2021.