Nedbank Acquires Fintech Startup iKhokha for $90m to Aid in Empowering SMEs

South African banking giant Nedbank has just made a big move to support small and medium businesses by buying the fintech startup iKhokha for $90 million. This deal, paid fully in cash and worth around R1.65 billion, is expected to wrap up in the next few months once all the approvals are in. Nedbank acquires fintech startup iKhokha for $90m to make it easier for entrepreneurs across South Africa to access modern digital tools and grow their businesses.

iKhokha started in Durban back in 2012, created by Matt Putman, Ramsay Daly, and Clive Putman. Over the years, it has become a trusted helper for many South African small businesses by offering simple card machines, digital payment services, and business tools that work well. Each year, iKhokha handles more than R20 billion in payments and supports small businesses with over R3 billion in working capital loans. Now that Nedbank acquires fintech startup iKhokha for $90m, it’s combining its own banking experience with iKhokha’s smart technology to help more small businesses succeed.

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Ciko Thomas, who leads Nedbank’s personal and private banking, called this “a pivotal moment” for the bank’s plans to focus on small companies. He said the deal feels like a natural next step because Nedbank and iKhokha have already worked together. With this buyout, Nedbank acquires iKhokha for $90m and will be able to give small business owners great tools to thrive in a changing market.

This purchase fits well with Nedbank’s recent big upgrade to its technology. The bank finished a huge IT project, Managed Evolution, in 2024, spending R11.7 billion to modernize its systems. Now, Nedbank plans to spend between R1.8 billion and R2.5 billion every year on new tech like artificial intelligence, better payment solutions, and modern card services. By buying iKhokha, Nedbank is making its digital services even stronger.

iKhokha is well known in South Africa’s fintech world. Its mobile card machines and app let shop owners accept card payments easily anywhere. It also helps businesses manage stock, issue invoices, and analyze sales, making everyday running of a business smoother. Investors like Apis Partners, Crossfin Holdings, and the International Finance Corporation have supported iKhokha from early on, helping it grow fast and add new features.

Matt Putman, iKhokha’s CEO and co-founder, said this is a proud moment for the whole team. He’s excited because joining Nedbank will help iKhokha grow faster, create new products, and bring more value to customers. Putman also mentioned plans to offer iKhokha’s services in other African countries, matching Nedbank’s own goals to expand in the region.

Even though Nedbank acquires fintech startup iKhokha for $90m, iKhokha will keep its own brand and leadership. It will run as a fully owned part of Nedbank but stay true to its innovative roots while using Nedbank’s big resources. The deal also includes a management lock-in to keep the company focused on long-term success.

This acquisition is also great news for iKhokha’s early investors. Apis Partners, Crossfin Holdings, and the IFC have stuck with the company from the start. Dean Sparrow, CEO of Crossfin Holdings, said they feel proud of iKhokha’s journey and happy it’s found a solid home with Nedbank. Apis Partners leaders Matteo Stefanel and Udayan Goyal also praised the success, noting how iKhokha has grown into one of South Africa’s top payment companies. They trust Nedbank to help iKhokha keep expanding its mission to make finance easier to access.

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Jason Quinn, Nedbank Group CEO, said helping entrepreneurs is key to a strong and inclusive economy. He believes iKhokha’s goals and technology fit perfectly with Nedbank’s plan to bring digital growth to small businesses. Together, Nedbank and iKhokha will open new doors for business growth in South Africa and, possibly, in other African countries.

Nedbank acquires fintech startup iKhokha for $90m to better support small and medium-sized businesses. This important deal brings together Nedbank’s banking strength and iKhokha’s tech savvy to help many South African entrepreneurs flourish today and into the future.

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