Patrice Motsepe's African Rainbow Capital (ARC) has acquired a 20% stake in South African LTE provider, Rain. Apart from the equity stake that ARC will be acquiring, the deal details and amount were not disclosed.
“We are delighted to partner with African Rainbow Capital and look forward to the strategic value they bring to the team,” said Paul Harris, Chairperson at Rain.
Harris added that the capital raised from ARC will ensure that Rain has the capital to achieve its roll-out targets.
“It is exciting to invest in a company that is at the start of its growth trajectory, There is great demand in our country for fast, reliable and affordable data coverage and Rain promises to deliver just that,” said Johan van Zyl, co-CEO at ARC.
ARC is not new to investing in technology companies. Among others, it previously acquired a 10% stake in FinTech company, TYME.
Rain is reported to have already deploted over 1,000 sites and 1,500 base stations. The South African LTE provider also has an agreement with ISP, Internet Solutions (owned by Dimension Data), to provide its, Internet Solutions', clients with wireless broadband services powered by the Rain network.
Rain entrance into the 4G/LTE space is welcome as campaigns calling for mobile data prices to drop in South Africa continue.