Legacy Africa Capital Partners invests in Welltec to enhance financial wellness in South Africa
Legacy Africa Capital Partners invests in Welltec to enhance financial wellness in South Africa
Welltec's digital Credit Gateway platform is fostering financial wellness by offering personalised, actionable guidance for consumers.
Legacy Africa Capital Partners (LACP), through its Legacy Africa Capital Partners Fund I, announced an investment for a significant minority stake in Welltec, a South African financial wellness technology company and provider of responsible credit solutions for consumers.
Founded in 2016, Welltec's innovative digital Credit Gateway platform is fostering financial wellness by offering personalised, actionable guidance for consumers. Through the platform, users can access their credit score and a full credit report in under five minutes, along with credit improvement recommendations. To date, Welltec, in collaboration with partners that license its technology services, has restructured more than R1 billion worth of credit for over 170,000 consumers. Other products available on the platform include life insurance, funeral policies, wills, medical aid, and bank accounts; these services are offered through third parties.
The platform is white-labelled for a range of corporate clients – including retailers, fund managers, insurance companies, unions, credit providers and debt counsellors – enhancing the financial health of their employees and customers. Beyond improving end-users' financial wellness, Welltec's platform delivers additional benefits to its clients. For example, asset management firms find it a strategic tool to deter early savings withdrawals among financially constrained members. Likewise, insurance companies use it to help cash-strapped members maintain their premium payments.
Many South Africans lack the necessary financial literacy, responsiveness to evolving economic conditions, and access to guidance and education required to achieve their monetary goals. In response, many have turned to unsecured credit, with personal loans becoming a crucial lifeline. This highlights the urgent need for comprehensive support to help South Africans navigate their financial affairs more effectively.
“Welltec Group is pleased to partner with Legacy Africa as we embark on an exciting new chapter, one that will allow us to better serve our customers and drive innovation within our business,” said Johan Jonck, Chairman of Welltec Group. “I want to express my gratitude to our employees, partners, and shareholders for their support throughout this process. We look forward to the bright future ahead as we focus on continuing to offer holistic credit solutions that can provide immediate relief to credit strained consumers.”
"Our investment in Welltec aligns perfectly with our mission to back innovative companies that are making a significant impact. Welltec's commitment to enhancing financial literacy and wellness in South Africa resonates deeply with our values. We are excited to be part of their journey in reshaping the financial landscape for the better," commented Kelebantswe Morare, Lead Transactor and Senior Associate at LACP.
The fund's other investments encompass contract food manufacturing and packing company Kelpack Manufacturing; plastics conversion business Penflex; building materials company Everite; Continuous Power Africa, a provider of power and monitoring solutions to the telecommunications industry; and building supplies manufacturer Swartland.
About Welltec
Welltec Group, together with the partners that license its technology services, has restructured more than R1 billion worth of credit for over 170,000 consumers to date. Its responsible, tech-enabled financial wellness solutions provide relief to credit-strained customers and help them build a better financial future. The company is committed to being client centric and product agnostic, offering free credit checks and financial literacy training. The Welltec Group platform powers a suite of innovative solutions taking consumers from over-indebtedness to building wealth.
About Legacy Africa Capital Partners
Legacy Africa Capital Partners (LACP), founded in September 2018, is a private equity fund management business. LACP is the manager of Legacy Africa Capital Partners Fund I and is part of Legacy Africa Fund Managers. The firm is 100% black-owned and managed, with a team of deal principals boasting an extensive history in private equity investing. LACP is dedicated to providing capital to entrepreneurial, unlisted companies that are seeking expansion or buy-out capital to introduce black shareholding and drive growth.
https://legacyafrica.co.za/private-equity/
For enquiries, contact Kelebantswe Morare or Kgosi Monametsi, at kelebantswe@legacyafrica.co.za and kgosi@legacyafrica.co.za