Diginex Shares Slide Despite Strategic Acquisition Spree

Diginex equity has experienced a sharp sell-off, plunging approximately 32% over a single trading week. This decline comes in direct contrast to the company's announcement of two strategic acquisitions aimed at expanding its environmental, social, and governance (ESG) technology portfolio. The market's reaction suggests investor concerns over share dilution are currently outweighing optimism about the long-term growth potential of these deals.

The downward pressure on Diginex's share price was pronounced and sustained. Between January 5th and January 9th, the stock recorded consistent losses:

• January 5th: Closed at $4.55
• January 6th: Fell to $4.05, an 11.0% drop
• January 7th: Declined further to $3.79, down 6.4%
• January 8th: Slipped to $3.56, losing another 6.1%
• January 9th: Settled at $3.08, marking a significant 13.5% single-day decrease

Trading volume surged on January 9th, exceeding 2.7 million shares. Analysts attribute the bearish sentiment primarily to the dilutive effect of the share-based consideration involved in the acquisitions.

Major Acquisition: Plan A for Carbon Management

On January 7th, Diginex signed an agreement to acquire Plan A, a Berlin-based provider of artificial intelligence-driven carbon accounting software. The total consideration for this transaction is €55 million. The payment structure includes €3 million in cash and the issuance of approximately 6.72 million Diginex common shares, valued at €52 million.

This deal introduces two notable new shareholders to Diginex's register: financial giants Visa and Deutsche Bank. The combined platform is designed to integrate ESG reporting, carbon footprint calculation, and decarbonization strategy tools.

Key Transaction Details:

Should investors sell immediately? Or is it worth buying Diginex?

• Total Value: €55 million (€3m cash, €52m in equity)
• Strategic Shareholders: Visa and Deutsche Bank join as investors
• Sector Potential: Industry projections estimate an $80-100 billion market by 2030
• Sector Growth: Forecasted annual growth rates of 20-25%

Miles Pelham, Chairman of Diginex, described the acquisition as a "transformative milestone." Lubomila Jordanova, founder and CEO of Plan A, stated the merger would drive a "definitive shift" by addressing current fragmentation in the sustainability software market.

Second Deal: Bolstering Human Rights Due Diligence

The company finalized its second strategic purchase on January 8th, acquiring The Remedy Project, a Hong Kong-based organization specializing in labor and human rights within global supply chains. The acquisition price consists of one million Diginex common shares issued upfront, with the potential for an additional one million shares contingent upon the achievement of specific performance milestones over a three-year period.

This move complements Diginex's existing product suite, including diginexLUMEN and diginexAPPRISE, and is positioned to help clients comply with emerging regulations like the EU's supply chain directive.

Financial Context: Growth Amidst Losses

The company's recent financials, reported on December 9th, present a mixed picture. Revenue showed impressive growth, increasing by 293% to $2.0 million for the half-year period. However, the operating loss also widened significantly to $6.0 million, driven largely by costs associated with merger and acquisition activities.

Diginex reported net assets of $10.9 million as of September 30, 2025. The balance sheet was strengthened in October by a warrant exercise that generated an additional $13.8 million in liquidity.

The coming quarters will be critical for Diginex as it works to integrate these two new businesses. The acquisitions provide clear geographic expansion, with Plan A strengthening its European footprint and The Remedy Project enhancing its Asian presence. The central question for investors remains whether the anticipated synergies and growth can ultimately offset the dilutive impact of the deals and guide the company toward operational profitability.