Nedbank Acquires iKhokha in $94M Deal to Boost SMEs

Ramsay Daly and Matt Putman, iKhokha Co-Founders

South African fintech startup iKhokha has been acquired by Nedbank Group, one of South Africa’s leading financial services providers, in a ZAR1.65 billion (US$94 million) deal that marks a milestone in Nedbank’s strategy to deepen its support for SMEs through digital innovation and inclusive financial services. 

Founded in 2012 by Matt Putman, Ramsay Daly and Clive Putman, iKhokha provides card machines, digital payment solutions, and business tools to SMEs. Since its founding, iKhokha has helped hundreds of thousands of entrepreneurs grow their businesses by making financial services more accessible and affordable.

Nedbank Group, meanwhile, is one of Africa’s largest banking groups, with operations in  South Africa, Namibia, Eswatini, Mozambique, Lesotho and Zimbabwe, and offshore in the Isle of Man and Jersey. The deal that will see it acquire 100 per cent of iKhokha is an all-cash one, subject to customary regulatory approvals and expected to conclude in the coming months. 

“This is a proud moment for both the founders and the broader iKhokha leadership team,” Putman said. “Joining forces with Nedbank gives us the platform to scale our impact, further accelerate product innovation, and unlock new value for our merchants. There is great alignment across both leadership teams on the synergies that can be unlocked through this 

transaction, and we believe our combined strengths will result in a truly differentiating and highly competitive value proposition for SMEs in market. It also opens the door for us to explore expansion into other strategic markets on the continent. We remain committed to our mission of empowering  entrepreneurs and building tools that help small businesses thrive.” 

“This acquisition is a natural evolution of our existing relationship with iKhokha and we are incredibly excited to welcome iKhokha to our Nedbank family,” said Ciko Thomas, group managing executive for personal and private banking. “The acquisition is a pivotal moment in our strategy to empower the SME market. 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.”

Source: Disrupt Africa