South Africa’s Transaction Capital transforms into global BPO powerhouse
CRAIGHALL, SOUTH AFRICA — Transaction Capital has officially transitioned from an investment holding company to a global specialist business process outsourcing (BPO) operator.
This strategic transformation, driven by key transactions over the past year, positions its subsidiary Nutun as South Africa’s first home-grown BPO to be publicly traded on the Johannesburg Stock Exchange (JSE).
Unveiling its results for the financial year ending September 30, Transaction Capital emphasized its commitment to streamlining operations and prioritizing core businesses. “Nutun will become the first South African home-grown BPO to be publicly traded on the Johannesburg Stock Exchange,” the company stated.
Major transactions underpin realignment
Transaction Capital executed several critical initiatives in 2024 to realign its business model:
- Raised ZAR 1 billion (US$55 million) in capital for WeBuyCars, followed by distributing and separately listing its shares.
- Eliminated holding company net debt and contingent liabilities.
- Sold non-core subsidiaries within Nutun to strengthen its balance sheet.
- Disposed of a controlling interest in Mobalyz to a management consortium.
These steps simplified Transaction Capital’s structure, allowing it to focus on Nutun’s growth and innovation in the competitive BPO sector.
Nutun’s market leadership and differentiation
Nutun brings over 25 years of experience in South Africa’s BPO market, setting itself apart from multinational entrants by operating as an owner-operator rather than through franchise or branch models. The company remains a leading provider of credit and collection services and an acquirer of locally acquired non-performing loans (NPL).
Recent moves, such as selling Nutun Australia for ZAR 624 million (US$34 million) and Nutun Transact for ZAR 405 million (US$22 million), further streamlined operations.
Additionally, an accelerated buy-out of Synergy CX’s minority shareholders enhanced liquidity and fortified Nutun’s balance sheet.
Financial results and future outlook
While Transaction Capital reported a core headline earnings loss of ZAR 92 million (US$5 million) from continuing operations — compared to a profit of ZAR 179 million (US$9.98 million) in 2023 — the group remains optimistic about Nutun’s long-term potential. Legacy costs at the group head office have been eliminated, and Nutun resumed book-buying activities in Q4 2024.
“The outlook on Nutun’s medium- and long-term potential is positive,” the company stated, forecasting growth into 2025 as market conditions improve and liquidity gains take effect.
Transaction Capital’s transformation marks a milestone in its evolution, positioning it as a global leader in the BPO industry while strengthening South Africa’s presence in this growing sector.
