The ZAR1.65 billion (US $94 million) acquisition of South African fintech startup iKhokha by Nedbank Group, one of the country’s top financial services providers, represents a significant step in Nedbank’s plan to strengthen its support for SMEs through inclusive financial services and digital innovation.
iKhokha, which was founded in 2012 by Matt Putman, Ramsay Daly, and Clive Putman, offers SMEs business tools, digital payment solutions, and card machines. Since its establishment, iKhokha has made financial services more widely available and reasonably priced, assisting hundreds of thousands of business owners in expanding their enterprises.
With operations in South Africa, Namibia, Eswatini, Mozambique, Lesotho, and Zimbabwe, as well as offshore in the Isle of Man and Jersey, Nedbank Group is one of Africa’s biggest banking groups. Subject to customary regulatory approvals, the all-cash deal that will see it acquire 100% of iKhokha is anticipated to close in the upcoming months.
“This is a proud moment for both the founders and the broader iKhokha leadership team,” Putman said. “Joining forces with Nedbank gives us the platform to scale our impact, further accelerate product innovation, and unlock new value for our merchants. There is great alignment across both leadership teams on the synergies that can be unlocked through this
transaction, and we believe our combined strengths will result in a truly differentiating and highly competitive value proposition for SMEs in market. It also opens the door for us to explore expansion into other strategic markets on the continent. We remain committed to our mission of empowering entrepreneurs and building tools that help small businesses thrive.”
“This acquisition is a natural evolution of our existing relationship with iKhokha and we are incredibly excited to welcome iKhokha to our Nedbank family,” said Ciko Thomas, group managing executive for personal and private banking. “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.”
