Nedbank Group, a top South African financial services provider, has announced a binding agreement to acquire 100% of fintech innovator iKhokha in an all-cash deal worth approximately R1.65 billion (subject to adjustments). This acquisition reinforces Nedbank’s strategy to enhance digital financial solutions for small and medium-sized enterprises (SMEs).
The transaction, pending regulatory approvals, is expected to finalize in the coming months. Founded in 2012, iKhokha has become a trusted partner for South African entrepreneurs, offering affordable payment solutions and business management tools. Post-acquisition, iKhokha will operate as a wholly owned Nedbank subsidiary while retaining its brand and leadership.
Strategic Alignment for SME Growth
Ciko Thomas, Group Managing Executive for Personal and Private Banking at Nedbank, stated: “This acquisition is a natural evolution of our existing relationship with iKhokha and we are incredibly excited to welcome iKhokha to our Nedbank family. 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.”
Jason Quinn, Nedbank Group CEO, added: “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. Together, we will unlock new opportunities for growth and financial inclusion in South Africa and potentially abroad.”
Successful Exit for Investors
The deal marks a successful exit for iKhokha’s investors—Apis Partners, Crossfin Holdings, and the International Finance Corporation (IFC)—who supported the company’s growth.
Dean Sparrow, CEO of Crossfin Holdings, remarked: “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’ Matteo Stefanel and Udayan Goyal noted: “We are incredibly proud of how far iKhokha has come—from a promising fintech startup to one of South Africa’s leading payment providers. As iKhokha enters its next phase under Nedbank, we’re confident it will continue scaling its mission of financial inclusion.”
Future Growth Under Nedbank
Matt Putman, iKhokha CEO and co-founder, 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.”
The acquisition includes a management lock-in to ensure continuity and alignment with long-term growth goals.
Advisors:
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Nedbank: Nedbank CIB Corporate Finance (sole corporate advisor); Nedbank Group Legal & Bowman Gilfillan (legal advisors).
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iKhokha: Morgan Stanley (sole financial advisor); Webber Wentzel (legal & tax advisor).
This strategic move positions Nedbank and iKhokha to drive SME digital transformation across South Africa and beyond.
