South African financial services giant Nedbank Group has secured a $90 million (R1.65 billion) all-cash acquisition of the Durban-based fintech startup iKhokha. The deal, which is subject to regulatory approvals, is a strategic move for Nedbank as it seeks to deepen its commitment to supporting small and medium-sized enterprises (SMEs) with innovative digital solutions. The transaction is expected to finalize in the upcoming months.

This acquisition supports Nedbank’s broader vision to promote entrepreneurship and advance financial inclusion across South Africa.

Founded in 2012 by Matt Putman, Ramsay Daly, and Clive Putman, iKhokha has become a trusted partner for South African SMEs, offering affordable card machines, digital payment solutions, and business management tools. The fintech firm processes over R20 billion in digital payments annually and has provided more than R3 billion in working capital to the SME sector.

Ciko Thomas, Nedbank’s Group Managing Executive for Personal and Private Banking, hailed the acquisition as a “pivotal moment” in the bank’s SME-focused strategy. “This acquisition represents the natural evolution of our existing relationship with iKhokha,” Thomas remarked. “By merging their innovative technology with our extensive banking experience, we will provide small business clients with industry-leading tools to help them succeed.”

Nedbank is also focused on enhancing its digital offerings in a competitive banking environment, especially as South Africa’s leading banks are increasingly investing in technology to compete with nimble, digital-first rivals. The acquisition follows Nedbank’s R11.7-billion Managed Evolution IT overhaul completed in 2024, which modernized its IT infrastructure. The bank now plans to allocate R1.8 billion to R2.5 billion annually to emerging technologies, including AI, payments, and card modernization.

iKhokha has carved out a significant position within South Africa’s fintech ecosystem. Its mobile point-of-sale solutions and app enable merchants to accept card payments effortlessly, while its platform also offers tools for inventory management, invoicing, and analytics. These capabilities empower SMEs to streamline their operations. Over the years, iKhokha has received backing from investors such as Apis Partners, Crossfin Holdings, and the International Finance Corporation (IFC), who have been instrumental in helping the company scale and innovate.

“This is a proud moment for both the founders and the broader leadership team of iKhokha,” commented Matt Putman, CEO and co-founder of iKhokha.

“Joining forces with Nedbank provides us with the platform to scale our impact, accelerate product innovation, and unlock new value for our merchants,” said Putman, adding that iKhokha plans to expand into other African markets, aligning with Nedbank’s regional growth ambitions.

Under the acquisition terms, iKhokha will continue to operate as a wholly-owned subsidiary of Nedbank, retaining its brand and leadership team. This structure allows iKhokha to maintain its entrepreneurial spirit while tapping into Nedbank’s resources and expertise.

The deal marks a successful exit for iKhokha’s long-time investors. Apis Partners, Crossfin Holdings, and the IFC have supported iKhokha since its early stages. Dean Sparrow, CEO of Crossfin Holdings, expressed pride in iKhokha’s journey: “We are incredibly proud of what the iKhokha team has achieved, and we are pleased that the business, its people, and the SME market it serves have found a great home.”

Apis Partners’ Matteo Stefanel and Udayan Goyal echoed this sentiment, stating, “We are extremely proud of iKhokha’s journey from a promising fintech startup to one of South Africa’s leading payment providers.”

The investors are confident that Nedbank will help iKhokha expand its mission of financial inclusion.

Nedbank Group CEO Jason Quinn highlighted the broader significance of the acquisition. “Empowering entrepreneurs is critical to building a thriving, inclusive economy,” Quinn said. “iKhokha’s mission and technology are perfectly aligned with our vision for digital transformation in the SME sector. Together, we will unlock new growth opportunities in South Africa and potentially across Africa.”

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