Financial institution Nedbank acquires iKhokha for R1.65 billion, aiming to fortify their small and medium-sized enterprise (SME) expansion efforts.
Nedbank, a leading South African financial institution, has announced the acquisition of Durban-based payments fintech iKhokha for R1.65 billion in an all-cash deal. The acquisition is a significant milestone in Nedbank's strategy to deepen support for small and medium-sized enterprises (SMEs).
Founded in 2012 by Matt Putman, Ramsay Daly, and Clive Putman, iKhokha offers mobile point-of-sale card machines, a payments app, and business management tools for SMEs. The company has been serving the South African market and has found a new home within Nedbank.
The acquisition opens the door for iKhokha to explore other African markets. iKhokha's CEO, Matt Putman, said the deal unlocks synergies and a "highly competitive value proposition" for SMEs. Crossfin CEO Dean Sparrow is proud of iKhokha's achievements, and the deal requires regulatory approval and is expected to close in the coming months.
With the acquisition, Nedbank plans to accelerate growth in its SME customer segment by integrating iKhokha’s innovative digital payment and business management tools with its own banking infrastructure. This will provide South African SMEs with enhanced, best-in-class financial and digital tools to help their businesses thrive.
Key expansion plans include merging iKhokha’s payment technology with Nedbank’s banking systems to offer more integrated services to SME clients. The integration aims to provide SMEs with affordable card payment solutions, cash advances, and business management apps that simplify day-to-day operations.
Nedbank also plans to leverage its extensive resources to scale iKhokha’s digital innovation and reach more entrepreneurs. There is potential for iKhokha to expand beyond South Africa into other African markets, in line with Nedbank’s regional growth strategy.
This acquisition is positioned as a pivotal step in Nedbank’s multi-billion-rand digital transformation efforts, which aim to deepen financial inclusion and empower SMEs through technology. The deal includes iKhokha's backers Apis Partners, Crossfin Holdings, and the International Finance Corporation, with Crossfin having invested in iKhokha since its inception.
The acquisition supports Nedbank’s broader ambition to promote an inclusive, entrepreneur-driven economy and financial inclusion. As iKhokha continues to operate under its own brand and leadership as a wholly owned Nedbank subsidiary, the partnership is expected to drive innovation and growth in the SME sector and beyond.
[1] Nedbank Press Release
[2] iKhokha Press Release
[3] TechCentral Article
[4] Fin24 Article
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