South African payroll and human resources startup Radar has been acquired by mobile payment provider SnapScan, as founders Kobus Ehlers and Gerrit Greeff ditch their second startup for their first.
Ehlers and Greeff spent nearly a decade creating various payment products for and with banks, culminating in Snap Scanwhich became South Africa’s largest mobile payment product prior to its acquisition by Standard Bank in late 2016.
The couple started working on Radar – an integrated service that takes care of everything a business owner needs to grow and manage their team – along with Richard Oakley in 2019, and signed up their first customers in 2020. Radar has now been acquired by Firepay, the company behind SnapScan and a wholly owned subsidiary of Standard Bank, in a deal that both parties said had the potential to unlock a variety of value-added offers for SnapScan customers. The deal is pending regulatory approval.
“Firepay has been one of the original investors in Radar due to the close strategic fit between their offering and what we build at Radar. Both companies try to solve different problems faced by the same SME customers. When Radar started looking for a way to scale our distribution and take the product to the next level, it became clear that working closely with SnapScan would be a great way to achieve this,” Ehlers told Disrupt Africa.
“There are some very exciting possibilities when you combine our product with the reach and experience of the SnapScan team. We look forward to seeing the product grow and improve the lives of small business employers in South Africa.”
Marin Cundall, CEO of Firepay, said she was excited about Radar joining the team and the opportunities it brings to the business and its future offering.
“Our focus is on providing the best experience for businesses, and we believe this acquisition will help us achieve that goal,” he said.
The acquisition will see the founders of Radar leave the business, while the rest of the team will join Firepay. There will be no immediate changes to existing Radar customers or the products on sale.