Latvian-founded AvaFin acquired by South African retail bank Capitec

Polish fintech AvaFin with Latvian roots has been acquired by South African retail bank Capitec. Capitec's stake in the company has increased to 97,69% after acquiring 57,03% of AvaFin for €26.3M. Following the acquisition, AvaFin's management will hold 2.31% of the company.

Founded in Cyprus in 2012 by Davis Barons and Matiss Ansviesulis, AvaFin is a financial platform that offers non-bank consumer loan products such as short-term loans, credit lines, and long-term loans. It currently operates in Poland, Spain, Mexico, the Czech Republic, and Latvia. The company has a team of over 350 employees from more than 15 countries.

Until 2022, AvaFin operated under the name Cream Finance Holding Limited. In March 2017, a South African bank acquired a 40% interest in AvaFin.

All previous investors in the finance company, such as Boston-based Flint Capital, Cyprus-based Whirlon Investments Limited, and Basic Group Limited, exited Avafin. Flint Capital rated the exit as successful for the fund.

By acquiring a controlling stake in Avafin, Capitec will expand its online consumer lending solutions and enter new markets where AvaFin currently operates.