Nedbank group, one of South Africa’s financial services giants, has acquired Durban-based fintech startup iKhokha in an all-cash deal for approximately R1.65 billion.
The acquisition will see iKhokha become a wholly owned subsidiary of Nedbank, but will retain its brand identity and current leadership team. The agreement also includes a comprehensive management lock-in to ensure continuity and alignment with long-term growth objectives.
Notably, the acquisition represents a successful exit for iKhokha’s long-standing investors, which include Apid Partners, Crossfin Holdings, and the International Finance Corporation. These investors have been instrumental in supporting the company’s growth and innovation since its early days.
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Commenting on the acquisition iKhokha wrote via a LinkedIn post,
“We are excited to share that we are joining forces with Nedbank. This gives us a great platform to further strengthen our SME offering in SA and scale into other African markets”.
CEO and co-founder Matt Putman described the acquisition as a proud moment for the team, noting that joining forces with Nedbank will accelerate product innovation, scale impact, and enable expansion into other African markets. The deal signals strong investor confidence in South African fintech, potentially attracting more investment to the sector. It also highlights the viability of fintech exits, as seen with investors like Apis Partners and the IFC.
Founded in 2012, by Matt Putman, Ramsay Dalt, and Clive Putman, iKhokha is a fintech company that develops digital tools to help entrepreneurs start, run, and grow their businesses. The company provides digital payment solutions and business tools for small and medium-sized enterprises (SMEs), including mobile point-of-sale (mPOS) devices, a payments app, and services like inventory management, invoicing, and analytics.
It processes over R20 billion ($1.1 billion) annually in digital payments and has disbursed more than R3 billion ($169.7 million) in working capital to SMEs. iKhokha’s mission is to empower entrepreneurs by making financial services accessible and affordable, driving financial inclusion in South Africa’s SME sector.
Nedbank’s leadership sees the acquisition as a key step in its strategy to deepen SME market support. Ciko Thomas, Group Managing Executive for Personal and Private Banking, highlighted the synergy between iKhokha’s technology and Nedbank’s banking expertise, promising “best-in-class tools” for small business clients.
He said,
“This acquisition is a natural evolution of our existing relationship with iKhokha and we are incredibly excited to welcome iKhokha to our Nedbank family. The acquisition is a pivotal moment in our strategy to empower the SME market. By combining their innovative technology with our deep banking experience, we will provide small business clients with the best-in-class tools they need to thrive.”
Also, Group Chief Executive Jason Quinn added that the move aligns with Nedbank’s vision for digital transformation in the SME sector and will open doors for growth and financial inclusion both in South Africa and beyond.
As a wholly-owned subsidiary, iKhokha will gain access to Nedbank’s financial resources, infrastructure, and client network. This would accelerate product development, improve service offerings, and support potential expansion into other African markets. Also, Nedbank’s pan-African presence will enable iKhokha to expand beyond South Africa, tapping into new markets and increasing its R20 billion ($1.1 billion) annual payment processing volume.
Overall, the impact of the acquisition will strengthen iKhokha’s ability to serve SMEs while enhancing Nedbank’s digital capabilities.