Nedbank Acquires iKhokha for $90 Million to Boost SME Digital Offerings

Nedbank Group, one of South Africa’s leading financial services providers, has reached an agreement to acquire fintech startup iKhokha in an all-cash transaction valued at $90 million (R1.65 billion). The deal, pending regulatory approvals, is expected to close in the coming months and represents a key step in Nedbank’s broader strategy to strengthen its digital offerings for small and medium-sized enterprises (SMEs). By integrating iKhokha’s innovative technology with its own banking infrastructure, Nedbank aims to empower entrepreneurs with advanced financial tools and digital payment solutions [1].

Founded in 2012 by Matt Putman, Ramsay Daly, and Clive Putman, iKhokha has established itself as a key player in South Africa’s fintech ecosystem. The platform provides SMEs with affordable card machines, digital payment solutions, and tools for inventory management, invoicing, and analytics. It processes over R20 billion in annual transactions and has disbursed more than R3 billion in working capital to the SME sector [1]. The fintech has received backing from investors such as Apis Partners, Crossfin Holdings, and the International Finance Corporation (IFC), which have played a critical role in scaling its operations [1].

Ciko Thomas, Nedbank’s Group Managing Executive for Personal and Private Banking, described the acquisition as a “pivotal moment” for the bank’s SME-focused strategy. “By combining iKhokha’s innovative technology with our banking expertise, we can deliver best-in-class tools that help small businesses thrive,” he said [1]. The deal is part of Nedbank’s broader digital transformation, which includes a R11.7-billion IT overhaul completed in 2024. The bank now plans to invest between R1.8 billion and R2.5 billion annually in emerging technologies, including artificial intelligence, payment systems, and card modernisation [1].

iKhokha will continue to operate under its own brand and retain its leadership team, maintaining its entrepreneurial culture while leveraging Nedbank’s financial resources and institutional expertise [1]. The fintech’s CEO, Matt Putman, said the acquisition provides a platform for scaling innovation and expanding its impact. “Joining forces with Nedbank gives us the ability to accelerate product innovation and unlock new value for our merchants,” he added [1].

The deal marks a successful exit for iKhokha’s early-stage investors. Dean Sparrow, CEO of Crossfin Holdings, expressed pride in the fintech’s growth and its future under Nedbank’s ownership. “We are extremely proud of what has been achieved by the iKhokha team and the fact that we have found a great home for the business, its people, and the SME market it serves,” he said [1]. Apis Partners’ Matteo Stefanel and Udayan Goyal also praised iKhokha’s journey from a promising startup to one of South Africa’s leading payment providers [1].

Nedbank Group CEO Jason Quinn emphasized the broader economic implications of the acquisition. “Empowering entrepreneurs is essential to building a thriving and inclusive economy,” he said. “iKhokha’s mission and technology align perfectly with our vision for digital transformation in the SME sector. Together, we will unlock new opportunities for growth in South Africa and potentially abroad” [1].

The acquisition underscores Nedbank’s commitment to digital innovation and financial inclusion. As major banks across the continent increasingly compete with agile fintechs, Nedbank’s move positions it to strengthen its competitive edge while supporting the growth of South Africa’s SME sector. The deal also reflects the growing trend of traditional financial institutions acquiring fintechs to accelerate their digital transformation and meet the evolving needs of business customers [1].