Zuko Komisa

- Nedbank has agreed to acquire fintech company iKhokha for R1.65 billion.
- The deal is a key part of Nedbank’s strategy to expand its digital services for the SME market.
- iKhokha will become a wholly-owned subsidiary but will continue to operate under its own brand.
Nedbank Group has announced its agreement to acquire the South African fintech company iKhokha.
The all-cash deal, valued at approximately R1.65 billion, is pending customary regulatory approvals and is expected to be finalised in the coming months.
The acquisition is a key component of Nedbank’s long-term strategy to expand its digital services for entrepreneurs. Jason Quinn, CEO of Nedbank Group, stated that the deal aligns perfectly with the bank’s 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,” Quinn said.
iKhokha, founded in 2012, has been a significant player in the fintech space, providing SMEs with card machines, digital payment solutions, and business management tools.
The company currently processes over R20 billion in digital payments and has provided more than R3 billion in working capital to the sector. Following the acquisition, iKhokha will operate as a wholly-owned subsidiary of Nedbank but will maintain its own brand and leadership team.
Matt Putman, co-founder and CEO of iKhokha, expressed enthusiasm for the partnership, stating that joining forces with Nedbank will enable them to “scale our impact, further accelerate product innovation, and unlock new value for our merchants.”
He believes the combined strengths of both companies will create a “highly competitive value proposition for SMEs.”
The announcement was well-received by the market, with Nedbank Group shares gaining around 2% following the news. The acquisition marks a significant milestone in Nedbank’s growth strategy, aimed at delivering accessible and technology-driven financial services to a crucial sector of the economy.
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