African Rainbow Capital

What African Rainbow Capital does

African Rainbow Capital (Pty) Ltd is a fully Black-owned and controlled South African investment holding company, founded in 2015 by Dr. Patrice Motsepe and headquartered in Sandton, Johannesburg, with a second office in Stellenbosch. It is a 100% subsidiary of Ubuntu-Botho Investments (UBI), a Black-owned entity created in 2004 whose stakeholders include trade unions, churches, traditional leaders, women, and youth, and which holds approximately 14% economic interest in Sanlam (Africa's largest non-banking financial services group), making UBI Sanlam's single largest shareholder. ARC's primary business is acquiring significant minority equity interests through the ARC Fund vehicle in established and start-up South African and African businesses with experienced management, demonstrable track records, strong cash flow, and solid growth prospects, with a stated focus on financial services and diversified non-financial industries.

ARC's underlying portfolio spans digital banking (100%-owned TymeBank, which reached $1.5B unicorn valuation, 11M+ customers, and profitability in December 2023), mobile telecommunications (Rain, valued at R22.3 billion in 2023), fintech (Crossfin, acquired jointly with Ethos for R1.5 billion / USD 94.5 million in November 2021), enterprise software support (Spinnaker Support (PTY) Ltd, a March 2026 JV positioned to make South Africa a global delivery and engineering hub for Oracle, SAP, and VMware support), and diversified holdings in residential solar (GoSolr), freight (Linebooker), estate planning (Capital Legacy), and stock exchange infrastructure (A2X). Group structure is organised through the ARC Fund (primary deal-making vehicle), ARC Financial Services Holdings (TymeBank parent; 25% sold to Sanlam Life in September 2024 for USD 218 million), and ARC Financial Services Investments.

ARC's revenue model is that of an investment holding company: capital appreciation and dividends from portfolio investments (FY2023 intrinsic net asset value of R15.3 billion, +15.8% YoY), realized gains from portfolio exits and strategic divestments (Crossfin buyout, MetroFibre exit, partial sale of ARC Financial Services Holdings to Sanlam Life), and joint-venture revenue (Spinnaker Support PTY Ltd services revenue). The company's core go-to-market is direct enterprise engagement for investment deals, channel partnerships through its B-BBEE empowerment credentials and UBI/Sanlam shareholder relationships, and OEM-embedded partnerships with global technology providers (Spinnaker Support) for local market entry. ARC Investments, the previously JSE-listed subsidiary (ticker AIL), delisted from the Johannesburg Stock Exchange in May 2025, transitioning the group to a fully private ownership structure under UBI/Motsepe control. The company actively warns the public that it does not take direct payments or deposits and that ARC shares are no longer available for public trading, in response to fraudulent schemes misusing its branding.

Name

African Rainbow Capital

Legal name

African Rainbow Capital (Pty) Ltd

Website

http://www.africanrainbowcapital.co.za/

Company type

Private

Founded year

2004

Operating status

Operating

Headcount range

11–50 employees

Short description

African Rainbow Capital is a fully Black-owned South African investment holding company (founded 2015, 100% subsidiary of Ubuntu-Botho Investments) that acquires significant minority equity stakes through the ARC Fund in financial services and diversified businesses, anchored by TymeBank (digital bank) and Rain (mobile operator).

Ownership category

akta.pro rank

Product category

Investment Holding Company

NAICS

Portfolio Management and Investment Advice (523940), Miscellaneous Financial Investment Activities (523999), Other Financial Vehicles (525990)

SIC

Investors, Nec (6799)

akta.pro primary industry

HoldCo / Permanent Capital ETA (FSANALAE)

akta.pro secondary industry

Roll-Up / Buy-and-Build ETA (FSANALAF)

Keywords

• Minority equity investments
• Investment holding company
• B-BBEE empowerment
• Financial services investing
• Venture capital partnerships

Headquarters

HQ city

Gauteng

HQ country

South Africa

HQ region

Africa

Offices2 records

Markets served

GTM type

B2B

Offering type

Services

Cost components

Personnel, Operations, Marketing or Sales, Others

Revenue model

1. Capital appreciation and dividends from portfolio investments: ARC's core revenue stream derives from value creation across its diversified portfolio of minority equity interests, including dividends paid out from investee companies and capital gains on disposals. The intrinsic net asset value grew 15.8% year-on-year to R15.3 billion in FY2023.
2. Realized gains from portfolio exits and strategic divestments: ARC realizes capital gains through strategic transactions, including the R1.5 billion (~$94.5 million) Crossfin buyout co-led with Ethos in November 2021, and exits such as the MetroFibre divestment.
3. Joint venture revenue from Spinnaker Support (PTY) Ltd: ARC is a major investor in the Spinnaker Support South African JV (Spinnaker Support PTY Ltd), providing capital and local market expertise; revenue derives from third-party enterprise software support services to Oracle, SAP, and VMware customers.

Pricing tiers

Go-to-market motion3 records

Distribution channels3 records

Marketing channels5 records

Core offering

African Rainbow Capital (ARC) is a fully Black-owned and controlled South African investment holding company that acquires significant minority equity interests in established and start-up businesses, primarily in the South African and African financial services and diversified non-financial industries. Through the ARC Fund and other group vehicles, ARC deploys capital alongside strategic board-level assistance, targeting businesses with experienced management, demonstrable track records, strong cash flow and solid growth prospects, with a particular emphasis on B-BBEE empowerment credentials.

Product overview

African Rainbow Capital (ARC) is not a unified software product but a Black-owned South African investment holding company, formed in 2015 as a 100% subsidiary of Ubuntu-Botho Investments (UBI), focused on acquiring minority equity interests in South African and African financial services and diversified non-financial businesses. Its product/service architecture is a holding-company-plus-investment-vehicles structure: the parent ARC entity sits at the top, with the ARC Fund acting as the primary deal-making vehicle acquiring significant minority equity stakes in established and start-up businesses, alongside ARC Financial Services Holdings and ARC Financial Services Investments which channel financial-services-specific investments. UBI General Partner operates as the general partner entity of the parent UBI. Through these vehicles ARC delivers its offering of acquiring a shareholding in businesses that deliver exceptional returns on equity, providing strategic assistance at investee level, and deploying capital for community-related initiatives — exemplified by disclosed portfolio investments such as TymeBank (digital bank), Rain (mobile network operator), GoSolr (residential solar), Crossfin (fintech), Spinnaker Support SA (third-party Oracle/SAP/VMware software support), Linebooker (trucking), Capital Legacy, and A2X (stock exchange). ARC positions itself as a credible empowerment partner leveraging its balance sheet and leadership network relationships to unlock strategic and growth opportunities.

Differentiator

Problem solved

Functional benefit

Brands

• ARC Fund: ARC's primary fund vehicle through which the company acquires significant minority equity interests in established and start-up businesses (per Investment Philosophy page).
• ARC Financial Services Holdings
• ARC Financial Services Investments

Products and services

• ARC Fund The ARC Fund acquires significant minority equity interests in established and start-up businesses meeting criteria including experienced management, demonstrable track record, strong cash flow, solid growth prospects, established market position, and strong empowerment credentials. It backs market disruptors and initiatives that benefit the public, such as Rain and TymeBank.
• ARC Financial Services Holdings Holding entity within the ARC group that owns key financial services investments including TymeBank. In September 2024, Sanlam Life acquired a 25% stake in this entity in a USD 218 million transaction to leverage TymeBank's distribution network for selling insurance products in South Africa.
• ARC Financial Services Investments Investment vehicle within the ARC group structure for financial services portfolio investments, with its own annual B-BBEE ownership certificate documentation.
• UBI General Partner General partner entity of Ubuntu-Botho Investments within the ARC group structure, holding its own BEE ownership certificate documentation.

Quantifiable outcome

• Intrinsic net asset value grew 15.8% YoY to R15.3 billion in FY2023
• +4 more outcomes

Named customers2 records

Ideal customer profiles2 records

Technology focussed No

API detail

Has API

No

API docs

API detail

Core technology

AI maturity

App detail

Feature3 records

Partnerships

Ten partnerships are on record, tiered flagship, minor and core.

• Spinnaker SupportflagshipStrategic or Co-development Partner · 3 March 2026Spinnaker Support, a US-based provider of third-party support services for Oracle, SAP, and VMware software, entered the South African market through a partnership with African Rainbow Capital (ARC). The joint venture established Spinnaker Support (PTY) Ltd with ARC providing capital and local market expertise, and Spinnaker providing technical capabilities. The Johannesburg office launched with five employees in March 2026 and plans to position South Africa as a delivery and engineering hub. The launch targets organizations facing vendor-driven upgrade cycles, licensing shifts, and cost pressures, offering alternative support models.
• National HealthCare GroupminorStrategic or Co-development Partner · 11 March 2022TymeBank (ARC-controlled) partnered with National HealthCare Group to launch TymeHealth, a medical insurance offering priced as little as R139 per month for South Africans.
• AdumominorStrategic or Co-development Partner · 15 November 2021Adumo, a fintech and payments provider, partnered with TymeBank (ARC-controlled) to extend the MoreTyme payment offering aimed at SMEs in South Africa.
• PayfastminorStrategic or Co-development Partner · 21 October 2021Payfast, an online payments solutions provider, partnered with TymeBank (ARC-controlled) to introduce Buy Now Pay Later with MoreTyme.
• Zion Christian Church (ZCC)minorStrategic or Co-development Partner · 2 February 2020Unique banking partnership announced between the Zion Christian Church (ZCC) and TymeBank (ARC-controlled) in February 2020, providing ZCC members with banking services.
• Sanlam Investments (Absa-Sanlam asset management combination)flagshipStrategic or Co-development Partner · 25 September 2018Sanlam and Absa announced combining their investment management businesses in South Africa in October 2021. As ARC's parent UBI is Sanlam's single largest shareholder (~14% economic interest), ARC benefits from this strategic partnership and the BEE status of the combined entity.
• A2X Markets (stock exchange)coreStrategic or Co-development Partner · 1 October 2017ARC Investments is a backer of A2X, a four-year-old South African challenger stock exchange. A2X expects to break even by 2023 and has grown its value to R5 trillion over four years; ARC has supported A2X listings for multiple companies including Tiger Brands, Netcare, Impala Platinum, AngloGold Ashanti, Pan African Resources, Sygnia ETFs, Fairvest, SA Corporate Real Estate, PBT Group, and Capital Appreciation.
• SanlamflagshipStrategic or Co-development Partner · 1 January 2015ARC has a successful track-record through its relationship with Ubuntu-Botho Investments and Sanlam (Africa's largest non-banking financial services group). UBI (ARC's parent) holds approximately 14% economic interest in Sanlam, making UBI Sanlam's single largest shareholder. As Sanlam's empowerment partner, UBI continues to seek opportunities to unlock value to both Sanlam and UBI stakeholders.
• Ubuntu-Botho Investments (UBI)flagshipStrategic or Co-development Partner · 1 January 2004UBI is ARC's 100% parent shareholder. UBI was created in 2004 with its initial main purpose of building black-controlled capital; its most significant investment is approximately 14% economic interest in Sanlam, making it Sanlam's single largest shareholder and empowerment partner. UBI's shareholder base includes trade unions, churches, traditional leaders, women and the youth.
• The Foschini Group (TFG)coreStrategic or Co-development PartnerTymeBank (ARC-controlled) entered into a strategic partnership with The Foschini Group in October 2021, targeting TFG's 26 million customers in South Africa. The deal includes roll-out of 600 TymeBank kiosks starting at Jet stores in November 2021, with branded debit cards, financial products and Buy Now Pay Later offerings for TFG customers.

Scale indicators11 records

Recent moves8 records

Expansion highlights6 records

Direct peers

• RMI Holdings (Rand Merchant Investment Holdings): South African financial-services-focused investment holding company with a diversified portfolio of insurance, banking, and fintech stakes (e.g., Discovery, MMI, TymeBank-related ecosystem). Directly comparable to ARC's structure of minority equity stakes in established financial-services businesses.
• Ethos Capital / Ethos Private Equity: Leading South African private equity firm that co-invested with ARC in the $94.5M Crossfin acquisition (Nov 2021). Both deploy significant capital into established and growth-stage South African businesses through fund vehicles and seek minority equity stakes with strategic board involvement.
• Brait PLC: Alternative investment company focused on consumer-related businesses in South Africa and other emerging markets, holding significant stakes in Virgin Active, Premier Foods, and others. Comparable as an investment-holding vehicle pursuing concentrated equity stakes in select portfolio companies.
• African Capital Investments: South African empowerment investment holding company focused on acquiring minority equity stakes in financial-services and industrial businesses. Comparable as a BEE-focused SA investment holding pursuing minority equity strategies, though smaller in scale than ARC.

Broad incumbents

• Hosken Consolidated Investments (HCI): Large South African diversified investment holding company with significant stakes in gaming, hospitality, media, and financial services. Comparable as a publicly-traded SA investment holding pursuing minority equity stakes, though broader in scope than ARC's empowerment-focused mandate.
• Remgro: JSE-listed South African investment holding company with controlling stakes in food, insurance (RMI), banking, healthcare and infrastructure. Comparable as a long-term diversified holding-company model with significant minority equity positions; broader and more mature than ARC.
• PSG Group: South African diversified holding company focused on financial services (PSG Konsult, Capitec-related ecosystem, Curro). Comparable to ARC's investment-holding structure with minority equity stakes in growth-stage financial-services businesses.

Regional players

• Sanlam Investments / Sanlam Limited: Africa's largest non-banking financial services group; while a strategic partner of ARC (UBI holds ~14% economic interest; Sanlam Life acquired 25% of ARC Financial Services Holdings for $218M), Sanlam's investment-management arm is comparable as a regional financial-services investor operating across Africa with a similar holding structure.
• Ethniks (formerly known as other SA BEE investment vehicles): Other South African B-BBEE-focused investment vehicles serving as empowerment partners and minority equity investors; less identifiable individually but represents the broader SA BEE investment-holding peer set that competes for the same empowerment-deal flow as ARC.
• African Infrastructure Investment Managers (AIIM): Pan-African infrastructure-focused private equity manager with ties to Old Mutual; comparable as a fund-management platform deploying capital across African markets, particularly in renewables and infrastructure where ARC also invests (e.g., ARCH Africa Renewable Power Fund, GoSolr).

Market position

Strengths5 records

Weaknesses5 records

Competitive moat5 records

Key risks5 records

Key highlights7 records

Customer concentration

• Facebookfacebook.com/profile.php

Compliance6 records

Revenue estimate

Valuation estimate

Number of profiles

Profiles11 records

Subsidiaries7 records

Funding overview

Funding rounds1 record

Investors1 record

Funding detail is available on the Subscription and Enterprise plan.Contact sales →

M&A5 records

Investments28 records

M&A and investment is available on the Subscription and Enterprise plan.Contact sales →

Frequently asked questions about African Rainbow Capital