Raj's questions to Lesaka Technologies Inc (LSAK) leadership • Q1 2025
Question
Raj asked about the competitive landscape, specifically the opportunity to take market share from banks, and questioned if the Merchant segment's organic growth was softer than expected and what Adumo's contribution would be.
Answer
Executive Ali Zaynalabidin Mazanderani quantified the merchant acquiring market controlled by banks at approximately $1 billion in annual contribution and projected that nonbank fintechs could capture one-third to one-half of this, consistent with global trends. He also refuted the idea of soft performance, highlighting that Lesaka met guidance for nine consecutive quarters and explained how to derive Adumo's contribution from the full-year forecast. Executive Steven Heilbron added that Q1 is not a proxy for full-year growth, reiterated the 23% growth guidance for the Merchant division, and noted the current focus is on integration and platform building.