NASDAQ: LSAK

to a transactional account

we provide to that

consumer

to receive

their welfare

grant or

wages with

the merchant,

in turn,

digitizing the

cash received

through one

of our

cloud-connected

cash

vaults.

Each

participant

in

this

chain

is

a

Lesaka

customer,

and

each

interaction

deepens

our

data

insight

and

our

cross-sell

opportunity. As of June 30, 2026,

we served approximately 132,000

active merchants and approximately

2.1 million active

consumers,

and our Enterprise division connected a network of more than 650 billers and over

50 corporate clients across South Africa.

To build and maintain

our ecosystem, we have approximately 3,900 employees operating on the

ground in five countries: South

Africa (our primary

market), Namibia, Botswana,

Zambia and Kenya

as of June 30,

2026. Lesaka was created

in 2022, and we

have

since

combined

organic

growth

with

acquisitions

including

the

Connect

Group

(April

2022),

Adumo

(October

2024),

Recharger

(March 2025), and the

proposed acquisition of Bank

Zero (agreement signed June

2025, and closing subject

to achievement of relevant

condition

precedents) to assemble an integrated fintech platform, unified

under a single Lesaka brand in fiscal 2026. For a discussion

of specific developments during

fiscal 2026, see Item 7

“Management’s Discussion

and Analysis of Financial Condition

and Results

of Operations–Developments during Fiscal 2026”.

We

serve

a

large

and

structurally

underpenetrated

market.

Cash

remains

the

dominant

payment

instrument

across

much

of

Southern

Africa,

and a

material portion

of consumers

and small

businesses remain

outside, or

only partially

served by,

the formal

financial

system.

Across

our

footprint

and

adjacent

markets

accessible

through

strategic

partnerships,

we

serve

a

market

of

approximately 250 million people with an estimated serviceable addressable market of approximately ZAR 416 billion in net revenue

by 2030

as of

the date

of this

Annual Report.

This estimate

is derived

from management

analysis using

a range

of external

sources

including but not limited to: Population Reference

Bureau, IMF Database, Global Findex Report - 2025, Global

Data Analytics – SA

Card and

Payments Opportunities

and Risks

to 2028;

July 2024,

BDO –

Unlocking potential

Fintech in

Africa; June

2024, Boston

Consulting Group – Reimagining the Future of Finance; May 2023, combined with internal data, assumptions and management’s best

estimates.

3

Our Go-

To

-Market Model

Our go-to-market model describes how we serve and grow customer relationships in practice. It has five

elements:

1.

Wide breadth of solutions

– Our solutions span the five things we

help customers do – pay, receive, borrow, insure and grow

– and we

win a customer

relationship with a

single critical financial

service at a

relatively stable customer

acquisition cost,

expanding

the

relationship

from

there.

For

example,

a

community

merchant

will

often

first

adopt

our

supplier-enabled

payments product

to pay

for inventory

digitally,

and subsequently

add our

cash vaults,

card acquiring

or a

merchant cash

advance as their business grows. Similarly,

a consumer typically joins us by opening

a transactional account to receive their

monthly

social

security

grant

and

may

over

time

take

up

a

short-term

loan

or

a

funeral

insurance

policy.

This

approach

increases customer

lifetime value

with little

incremental

acquisition cost.

As of

June 30,

2026, approximately

51% of

our

active consumers and approximately 46% of our active merchants used

two or more of our products;

2.

Differentiated reach

– Rather than relying

on online-only sales

or expensive branch networks,

we deploy on-the-ground sales

teams

supported

by

cost-efficient

branches

and

community

service

centers

in

the

rural

and

peri-urban

areas

where

our

customers live and

transact, including close

to the locations where

grant payments are

disbursed. Our merchant

community

channel is built on the same principle, acquiring merchants through direct, face-to-face

sales with rapid conversion cycles;

3.

Digital engagement

– After the

initial in-person

sale, we steer

customers to digital

channels to serve

them more efficiently

and deepen their use of our solutions.

For consumers, this includes our banking

app and unstructured supplementary service

data (“USSD”) channels that

work in real time on

any mobile phone, including

basic feature phones without

internet access

– while merchants manage their deposits, settlements and supplier

payments through our digital merchant account;

4.

Proprietary access to

data

– Our solutions

give us unique visibility

into the transaction

flows of consumers

and merchants,

which we believe

is rare

in our

markets, particularly among

the underserviced. We put

this data

to work directly:

our consumer

lending is underwritten

using our view of the

money flowing in and

out of a consumer’s

account, and our merchant

lending

is underwritten using our visibility into a merchant’s

daily card and cash turnover; and

5.

A unified brand

– In November 2025, we relaunched our businesses under a single Lesaka brand, and during fiscal 2026 we

consolidated

our

brand

identity,

including

a

consistent

articulation

across

all

three

segments

–

of

what

we

enable

our

customers to do:

pay, receive, borrow, insure and grow. We believe a unified

brand and a

consistent expression of our

offering

build

trust,

support

customer

awareness

and

acquisition

across

divisions

and

facilitate

the

roll-out

and

adoption

of

new

solutions.

Our Business Segments

We operate and

report through three business segments: Merchant, Consumer

and Enterprise.

1. Merchant

Our Merchant Market

We manage

our Merchant operations through two distinct channels:

Community:

serves local, high-growth businesses ranging from kiosks and spaza shops (corner stores) to taverns, marketplaces

and the sole proprietors

and suppliers that serve

them acquired through direct,

face-to-face sales with rapid

conversion cycles. These

merchants

operate in

a largely

cash-based environment,

and we

believe they

will increasingly

adopt digital

payment solutions

and

complementary services as the secular shift from cash to digital payments

progresses.

Corporate:

serves

larger,

more

formal

businesses

from

small

local

retailers

to

multi-lane

stores,

franchises

and

large-scale

organizations that require customized, multi-product

solutions sold through a strategic, longer-term sales process.

As of June 30, 2026, we served approximately 132,000 active merchants.

Merchant Solutions

Our merchant solutions

serve merchants of

all sizes,

helping them accept

payments, manage and

digitize cash, run

their operations

and access working capital. Our merchant solutions and products comprise:

•

Merchant Acquiring:

card acceptance and payment processing solutions for merchants;

•

Software:

integrated

point-of-sale

(“POS”)

software

and

hardware,

principally

serving

the

restaurant

industry,

including

Unity, our cloud-based POS offering, which

enables easier integration of

our software and

acquiring propositions into a

single

bundle;

4

•

Cash Management:

instant

cash digitalization

solutions in a

merchant’s

store through cloud-connected

cash vaults, paired

with digital accounts through which merchants can track deposits and pay

suppliers;

•

Lending:

access to working capital through merchant cash advances

and business credit, underwritten using our proprietary

visibility into merchants’ transaction activity; and

•

Alternative Digital Products

(“ADP”):

prepaid solutions (airtime,

data, electricity and

gaming), bill payments,

and supplier-

enabled payments, which allow community merchants to

digitize payments to their suppliers at

competitive pricing and serve

as an entry point into the broader Lesaka merchant ecosystem.

We are dependent on a limited number of software and hardware suppliers. Refer to “