Nedbank acquires ikhokha for $93.3 million in an all cash deal

Nedbank has acquired South African payments fintech iKhokha in a R1.65 billion (USD 93.3 million) all-cash deal. iKhokha will maintain its brand and leadership under a management lock-in. This acquisition aims to deepen digital services for small businesses across South Africa.

In a strategic move to boost its digital services for small and medium enterprises (SMEs), Nedbank has entered a binding agreement to acquire iKhokha. Subject to regulatory approvals, the transaction is expected to close in the coming months.

Nedbank sees this acquisition as a significant leap forward in its strategy to digitally empower entrepreneurs. Ciko Thomas, Group Managing Executive for Personal and Private Banking at Nedbank, described it as “a pivotal moment” in Nedbank’s SME initiatives. He cited the alignment of iKhokha’s technology with the bank’s extensive financial services.

Similarly, iKhokha’s CEO and co-founder, Matt Putman, sees the acquisition as a platform to scale innovation and deliver even greater value to merchants. The deal also represents a successful exit for iKhokha’s long-term backers. These include Apis Partners, Crossfin Holdings, and the International Finance Corporation, who have been instrumental in the company’s growth.

Established in 2012 in Durban, iKhokha offers mobile point-of-sale (PoS) devices, a mobile app for card payments, and business management tools. The fintech processes over R20 billion (USD 1.1 billion) in annual digital payments. Furthermore, it has distributed more than R3 billion (USD 169.7 million) in working capital to SMEs

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Nedbank’s acquisition of iKhokha underscores a broader trend of traditional banks increasingly turning to fintech to stay competitive. They also aim to remain relevant in an era of digital-first banking. This deal not only advances Nedbank’s digital capabilities. It also serves as a testament to how legacy institutions can accelerate innovation by integrating tech-driven enterprises.

Therefore, this acquisition marks a pivotal step toward deepening financial inclusion and empowering entrepreneurs. It highlights the growing importance of fintech in the South African financial landscape.