Cape Town — Investment group, Legacy Africa Captial Partners (LACP) Fund 1 has announced a significant investment in Welltec, a leading Financial Wellness Technology (FinWellTech) firm.
LACP is a specialist management service that specialises in listed investment opportunities that invests in high-growth African companies that we believe are shaping Africa’s future.
The investment of R100m will allow Welltec to strengthen their position in the market and expand their financial wellness programs, aimed at financial and fintech organisations.
As South Africans face high amounts of financial stress, due to high debt levels, and an ailing economy, and as such, this investment comes at a crucial time. Many South African are now moving towards personal loans as they try to navigate “crucial financial challenges”.
Welltec’s FinWellTech software plays a pivotal role in developing configurable, personalised financial wellness programs that guide individuals to financial well-being.
“The investment in Welltec represents a strategic move for LACP, aligning with our commitment to fostering innovative solutions in the financial technology space. We are impressed by Welltec’s adept and diverse management team who bring deep corporate finance knowledge and extensive experience in financial industries,” senior associate at LACP, Kelebantswe Morare, said.
Morare said the partnership will not only strengthen Welltec’s market position, but will also support enterprises who have the potential to make significant impact in their respective sectors.
According to PwC’s 2023 Employee Financial Wellness Survey, 57% of employees said that finances are the top cause of stress in their lives.
Welltec allows users to manage personal finances, track spending, and set realistic financial goals, which will alleviate financial burdens. It restructures consumer debt by obtaining data and then restructuring a plan to help consumers obtain good debt.
“This investment from LACP marks a pivotal moment in Welltec’s journey to solve employee over-indebtedness. It enables us to further solidify our position as a leader in Financial Wellness Technology. With this support, we aim to expand our reach, enhance our product offerings, and continue innovating in ways that meet the evolving needs of our customers. This funding will not only help in scaling our bespoke financial wellness solution to blue chip employers but also in securing our future”, says Gert Jonck, CEO of Welltec.
This substantial investment from LACP is a testament to our growth and potential in the FinWellTech industry. Our investment in Welltec underscores LACP’s dedication to nurturing homegrown South African solutions. We believe in the power of local innovation to address local problems, build essential skills, and create job opportunities,” Johan Jonck, Chairman of Welltec, said.
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Compiled by Matthew Petersen
