Nedbank to acquire iKhokha in R1.65 billion push to boost SME digital services

South African banking group Nedbank has agreed to acquire local fintech player iKhokha in an all-cash deal valued at roughly R1.65 billion, aiming to expand its digital offerings for small and medium-sized enterprises (SMEs) while accelerating financial inclusion.

Image: iKhokha website. 

Nedbank Group, one of South Africa’s largest financial institutions, confirmed it has entered into a binding agreement to purchase 100% of iKhokha, a Durban-based payment and business solutions provider founded in 2012. The transaction, subject to regulatory clearance, is expected to close in the coming months. iKhokha will continue operating under its own brand and leadership as a wholly owned subsidiary of Nedbank.

The move builds on an existing partnership between the two companies. Ciko Thomas, Group Managing Executive for Personal and Private Banking at Nedbank, described the deal as “a pivotal moment in our strategy to empower the SME market,” adding that the combination of iKhokha’s technology and Nedbank’s banking expertise would deliver “best-in-class tools” for small businesses.

Group CEO Jason Quinn said the acquisition supports the bank’s broader vision for SME growth: “We believe that empowering entrepreneurs is essential to building a thriving and inclusive economy. iKhokha’s mission and technology align perfectly with our vision for digital transformation in the SME sector.”

Investor Exit and Strategic Fit

The agreement represents a significant exit for iKhokha’s backers, including Apis Partners, Crossfin Holdings, and the International Finance Corporation (IFC). Dean Sparrow, CEO of Crossfin Holdings, said: “We are extremely proud of what has been achieved by the iKhokha team to date and the fact that we have found a great home for the business, its people, and the SME market it services.”

Apis Partners’ co-founders Matteo Stefanel and Udayan Goyal highlighted iKhokha’s evolution “from a promising fintech startup to one of South Africa’s leading payment providers” and expressed confidence in its future under Nedbank’s ownership.

Growth Ambitions

Matt Putman, iKhokha’s CEO and co-founder, said joining Nedbank will “scale our impact, further accelerate product innovation, and unlock new value for our merchants.” The acquisition also includes a management lock-in to ensure continuity and alignment with long-term growth plans.

Advisers on the transaction included Nedbank CIB Corporate Finance and Bowman Gilfillan for Nedbank, and Morgan Stanley with Webber Wentzel for iKhokha.