Nedbank has announced plans to acquire payments fintech iKhokha for R1.65 billion ($94.3m), marking one of the bank’s largest fintech investments to date. The deal, which is structured as an all-cash transaction, represents a significant step in Nedbank’s ongoing strategy to strengthen its offering to South Africa’s small and medium-sized enterprise (SME) sector.
Ciko Thomas, Nedbank’s group managing executive for personal and private banking, described the acquisition as a strategic turning point.
This is a pivotal moment in our strategy to empower the SME market. By combining iKhokha’s innovative technology with Nedbank’s extensive banking expertise, we can deliver best-in-class tools and services that enable small businesses to thrive.
Founded in 2012 in Durban by Matt Putman, Ramsay Daly, and Clive Putman, iKhokha specializes in mobile point-of-sale (mPOS) solutions for SMEs. Its product range includes portable card machines and a mobile app that allows merchants to accept card payments. The app also offers business management tools, helping entrepreneurs streamline operations, track sales, and gain greater control over their finances.
Since its inception, iKhokha’s mission has been clear: to develop digital tools that “help anyone thrive in business.” Under the leadership of CEO Matt Putman, the company has grown into one of South Africa’s leading fintech brands serving the SME market.
Putman welcomed the acquisition, highlighting the close alignment between the two companies’ leadership teams.
There is great alignment on the synergies that can be unlocked through this transaction. We believe our combined strengths will result in a truly differentiating and highly competitive value proposition for SMEs.
While iKhokha’s operations are currently focused solely on South Africa, Putman noted that the partnership with Nedbank could open the door to expansion into other African markets.
The transaction also represents a notable exit for iKhokha’s long-standing backers: Apis Partners, Crossfin Holdings, and the International Finance Corporation (IFC). Crossfin, an early investor since iKhokha’s launch, expressed confidence in the deal’s outcome.
We are extremely proud of what the iKhokha team has achieved and pleased to have found a great home for the business, its people, and the SME market it serves.
Crossfin CEO Dean Sparrow
The acquisition is still subject to regulatory approval, with Nedbank expecting the transaction to close in the coming months. If approved, the deal could position Nedbank as a stronger player in the digital payments space, enabling it to offer an integrated blend of traditional banking and cutting-edge fintech solutions to South African entrepreneurs.
