DNI, a privately owned South African investment company, has announced investments exceeding R2.1 billion across connectivity, digital services and fintech. The transactions cover fibre infrastructure, prepaid broadband, smartphone financing and international mobile connectivity, extending the company’s portfolio across different parts of the digital services market.
One of the largest transactions involves Frogfoot, a South African fibre network operator, and Vox, an internet service provider serving businesses, public sector customers and households across the country. Hypa, a prepaid fibre business wholly owned by Vox, is also part of the investment.
The transaction values Frogfoot and Vox at an aggregate R14.4 billion. The DNI Consortium, comprising DNI, Sabvest Capital Limited, Masimong Group Holdings and Draper Gain International, will hold an approximate 34.8% interest in the companies. Sabvest and Draper-Gain are existing shareholders in DNI.
Frogfoot, which was founded more than 25 years ago, plans to use the new capital to increase its fibre rollout in underserved and lower income township communities. The company expects to reach 360,000 homes over the next 12 months and create more than 5,000 direct jobs in local communities.
Vox provides fixed and wireless connectivity, voice, data, cloud, collaboration and cybersecurity services. Hypa focuses on prepaid fibre broadband for lower income households across multiple open access fibre networks, including Frogfoot’s network. The two companies have also developed a model for building, deploying and selling high speed prepaid fibre broadband in lower income communities.
Abraham van der Merwe will lead the companies as CEO, alongside Gert Koen as chief financial officer. Van der Merwe said the additional capital would allow the businesses to increase the pace of their rollout.
DNI is also providing growth capital to Mission Mobile, an early stage mobile technology company that works with mobile network operators through a retail model based inside network stores. Its business model uses monthly payments to make smartphones and connectivity available to customers who may not qualify for conventional mobile contracts.
The investment will allow Mission Mobile to expand that model. The company’s co-founder and CEO, Tim Strike, said the objective is to increase access to smartphones and connectivity, which can be used for work, education and small businesses.
A separate investment is being made in KnowRoaming, which provides eSIM technology and an app for travellers seeking mobile connectivity across borders. The investment expands DNI’s existing SIM distribution activities and is intended to support KnowRoaming’s consumer reach and international operations.
DNI cited Juniper Research data showing that global travel eSIM revenue is expected to reach $8.7 billion by 2030. The research attributes the growth to factors including increased cross border travel, wider adoption of eSIM enabled devices and demand for app based connectivity services.
KnowRoaming director Mike Roffey said the investment would support the company’s expansion across Africa and international markets as eSIM adoption increases.
The transactions give DNI exposure to infrastructure, access and service models spanning fixed connectivity, mobile devices and international roaming. Together, the investments represent more than R2.1 billion in capital across the group’s connectivity and fintech activities.
