Mustek’s AI startup Business AI has abandoned its original marketplace model and pivoted to executive training and advisory, after finding South African businesses were not ready to buy AI at the pace the JSE-listed technology group had expected.
Business AI contributed an operating loss to the group for the financial year ended 30 June 2026, according to Mustek’s integrated report. Mustek did not disclose the size of the loss or the revenue the startup generated.
“The market proved to be earlier on its maturity curve than projected, with most South African companies still in pilot or proof-of-concept,” Mustek said. “Rather than push a market not yet ready to buy, Business AI pivoted towards advisory and executive education.”
From marketplace to boardroom
Mustek acquired a 51% stake in Business AI for R7 million in August 2025. The integrated report shows the investment has since reached R8 million. The startup has three permanent employees.
At launch, chief executive Hein Engelbrecht described a subscription marketplace where vetted developers, hyperscalers and hardware suppliers would sell AI products and tools to businesses.
“Anything and everything that’s got to do with AI, after vetting, will be able to present their services and support on the marketplace, and transact through the platform,” he said in September 2025. “There is a subscription model where you’ve got to pay a monthly amount to be a member, and then there is also a revenue-sharing model.”
Business AI now sells C-suite training and advisory instead, aimed at helping leaders “take control of their AI journey, with governance, cost control and data protection designed in from the outset.”
Traction, then a pivot
In April 2026, Mustek said Business AI was engaging with more than 20 Tier-1 organisations and was “already gaining meaningful traction in the market,” with customers “progressing beyond experimentation toward more structured, governed deployments.”
The integrated report attributes the weaker results to slow conversion. “Enterprise sales cycles ran longer than anticipated, and the cost of building the brand and certifying the partner ecosystem was incurred ahead of revenue maturation,” Mustek said. “Both dynamics are consistent with an early-stage, high-trust advisory business.”
Margins fell short of expectations, which the report described as “by design,” attributing the loss to “initial investment requirements and operational setup costs inherent in the entity’s current ‘startup’ phase.”
Management said it remained satisfied the results were in line with the strategic roadmap, and that the infrastructure now in place positions Business AI for improved margins as sales cycles shorten and the partner ecosystem generates recurring activity.
Mustek’s controlling stake gives it authority over Business AI’s direction and governance. Its board includes Engelbrecht, chief financial officer Shabana Aboo Baker and chief information officer Juan-Paul Gough.
Based on reporting by Luis Monzon for MyBroadband.
