Nedbank to acquire iKhokha for R1.65bn – what it means for South African SMEs

Nedbank Group has announced a landmark agreement to acquire 100% of South African fintech company iKhokha Proprietary Limited for approximately R1.65 billion in cash, subject to final adjustments. The transaction, revealed on Tuesday, is expected to conclude in the coming months, pending regulatory approvals.

Once the deal is finalised, iKhokha will become a wholly owned subsidiary of Nedbank but will retain its brand identity, leadership team, and operational independence. According to Nedbank, a comprehensive management lock-in is part of the agreement to ensure continuity and alignment with long-term growth objectives.

The acquisition forms part of Nedbank’s ongoing strategy to strengthen its position in the small and medium-sized enterprise (SME) sector by combining digital innovation with inclusive financial services. “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,” said Nedbank Group CEO Jason Quinn. “Together, we will unlock new opportunities for growth and financial inclusion in South Africa and potentially abroad.”

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Founded in 2012, iKhokha has grown into a leading provider of card machines, digital payment solutions, and business management tools for SMEs. The company processes more than R20 billion annually in digital payments and has disbursed over R3 billion in working capital to small businesses. Backed by private equity investor Apis Partners since 2016, iKhokha has been a notable driver of fintech adoption among SMEs, particularly those previously reliant on cash transactions.

iKhokha’s co-founder and CEO, Matt Putman, sees the acquisition as a catalyst for growth: “Joining forces with Nedbank gives us the platform to scale our impact, accelerate product innovation, and unlock new value for our merchants. There is strong alignment between our teams on the synergies that can be realised, and we believe our combined strengths will deliver a highly competitive proposition for SMEs.”

The announcement was met with a positive market response, with Nedbank shares rising around 2% on Wednesday morning. Analysts view the move as a strategic leap forward in addressing one of South Africa’s key economic challenges — enabling SMEs to thrive in an increasingly digital economy. If successful, the partnership could lead to faster access to funding, smarter payment tools, and a more integrated banking experience for entrepreneurs across the country.