ARC Investments, a prominent South African empowerment investment holding company, has reported robust portfolio growth for the 2024 financial year. The company’s Intrinsic Net Asset Value (INAV) per share saw an 8.5% rise to R12.38, driven by new investments and fair value gains. ARC Investments focuses on disruptive businesses leveraging technology to lower costs and expand services, enhancing inclusion and competitiveness across large economic sectors.
Key investments, including TymeBank, Linebooker, and Rain, performed well despite economic challenges. TymeBank is nearing the breakeven point, with a customer base reaching 9.5 million, while GOtyme in the Philippines attracted 3.6 million customers within 18 months of its launch. Additionally, Tyme Group’s pilot in Vietnam is progressing successfully, with plans to enter Indonesia by year-end. Linebooker, a tech-driven transport platform, continues to thrive, managing over 25,000 trucks and signing major international clients, potentially doubling its value next year. Rain, a leading South African network provider, generated R2.5 billion in EBITDA and earned recognition as the nation’s most-liked network provider, resulting in a R598 million fair value gain.
ARC Fund’s investment strategy remained focused on reinvesting in its existing portfolio, particularly in telecoms, financial services, agriculture, and mining. With a net investment of R1.2 billion, the fund increased its exposure to futuristic sectors such as fintech, renewable energy, and sustainable resources, which now account for over half of the portfolio. The fund has also continued to scale down its exposure to listed shares and dispose of non-core assets.
Johan van der Merwe, co-CEO of African Rainbow Capital, highlighted that 90% of the fund’s value is now concentrated in its top 12 investments, with mature and high-growth assets making up 87% of the portfolio. These investments are set to improve earnings visibility while early-stage investments remain a smaller, but strategically important, part of the portfolio.
The company’s financial services ecosystem, featuring companies like Sanlam, Alexforbes, TymeBank, and others, has generated significant synergies through collaboration, benefiting from economies of scale, improved client experiences, and enhanced distribution capacity. ARC Fund’s emphasis on technological innovation and future-focused investments ensures it remains a leader in driving growth and inclusion within the South African economy.
