Rain is now worth R25 billion

South African mobile network operator Rain has seen a substantial increase in its valuation over the past year, reaching R25 billion, according to the latest financial results of its major shareholder, African Rainbow Capital Investments (ARCI). Read: Bandwidth Blog & Smile 90.4FM Tech Tuesday: Drama in Space! Billionaire Patrice Motsepe’s ARCI revealed that it invested an additional R160 million in Rain in August 2024, increasing its stake to 21.

0%. The company’s valuation estimate rose from R4.5 billion to R5.



2 billion during the same period, representing a 16% jump. ARCI attributed this growth to several factors, including Rain’s successful acquisitions, fair value gains, and strong operational performance. The launch of RainOne and the 101 5G router, coupled with the company’s expansion of its 4G network, have significantly boosted subscriber growth and revenue.

Despite ongoing risks, ARCI remains confident in Rain’s ability to navigate challenges and solidify its position as a leading affordable data and mobile service provider in South Africa. The company’s EBITDA, a key measure of profitability, has grown significantly in recent years, reaching R2.5 billion in the fiscal year ending February 2024.

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