Nedbank has acquired Durban-based payments fintech iKhokha in an all-cash deal valued at R1.65 billion. This acquisition is a significant move for Nedbank, as it looks to strengthen its support for small and medium-sized enterprises (SMEs) in South Africa.
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“The acquisition is a pivotal moment in our strategy to empower the SME market,” said Ciko Thomas, Group Managing Executive for Personal and Private Banking at Nedbank. “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.”
Founded in 2012, iKhokha offers a range of mobile point-of-sale solutions, including card machines and a mobile app with business management tools. The company’s co-founder and CEO, Matt Putman, said the partnership with Nedbank will unlock synergies that create a “truly differentiating and highly competitive value proposition for SMEs.” He also noted that the deal could open the door for iKhokha to expand into other markets across Africa.
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The transaction provides a successful exit for iKhokha’s long-term investors, including Apis Partners, Crossfin Holdings, and the International Finance Corporation. Dean Sparrow, CEO of Crossfin, expressed pride in the iKhokha team and their finding “a great home for the business, its people and the SME market it services.”
The deal is now awaiting regulatory approvals and is expected to be finalized in the coming months.
