South African financial services powerhouse Nedbank Group has acquired Durban-based fintech startup iKhokha for $90 million (R1.65 billion) in an all-cash deal. The acquisition marks a significant milestone in Nedbank’s strategy to deepen its support for small and medium-sized enterprises (SMEs) through innovative digital solutions. The transaction, pending regulatory approvals, is expected to conclude in the coming months.
The acquisition aligns with Nedbank’s vision to empower entrepreneurs and drive financial inclusion across South Africa.
iKhokha, founded in 2012 by Matt Putman, Ramsay Daly, and Clive Putman, has become a trusted partner for South African SMEs. The fintech startup provides affordable card machines, digital payment solutions, and business management tools. It processes over R20 billion annually in digital payments and has disbursed more than R3 billion in working capital to the SME sector.
Ciko Thomas, Nedbank’s Group Managing Executive for Personal and Private Banking, called the acquisition a “pivotal moment” in the bank’s SME-focused strategy. “This is a natural evolution of our existing relationship with iKhokha,” Thomas said. “By combining their innovative technology with our deep banking experience, we will provide small business clients with best-in-class tools to thrive.”
The deal positions Nedbank to strengthen its digital offerings in a competitive banking ecosystem. Especially as South Africa’s major banks are increasingly investing in technology to counter agile, digital-first competitors. Nedbank’s move follows its R11.7-billion Managed Evolution IT overhaul, completed in 2024, which modernised its IT infrastructure. The bank now plans to invest R1.8 billion to R2.5 billion annually in emerging technologies, including AI, payments, and card modernisation.
iKhokha is a fintech powerhouse for SMEs, and what it means for Nedbank
iKhokha has carved a niche in South Africa’s fintech ecosystem. Its mobile point-of-sale solutions and app enable merchants to accept card payments seamlessly. The platform also offers tools for inventory management, invoicing, and analytics, empowering SMEs to streamline operations. Since its inception, iKhokha has been backed by investors like Apis Partners, Crossfin Holdings, and the International Finance Corporation (IFC). These investors have played a key role in scaling its operations and innovation.
“This is a proud moment for both the founders and the broader iKhokha leadership team,” said Matt Putman, CEO and co-founder of iKhokha.
“Joining forces with Nedbank gives us the platform to scale our impact, accelerate product innovation, and unlock new value for our merchants.” Putman highlighted the potential for iKhokha to expand into other African markets, aligning with Nedbank’s regional growth ambitions.
The acquisition includes a management lock-in to ensure continuity and alignment with long-term goals.
iKhokha will operate as a wholly owned subsidiary of Nedbank but retain its brand and leadership team. This structure allows iKhokha to maintain its entrepreneurial spirit while leveraging Nedbank’s resources and expertise.
The deal marks a successful exit for iKhokha’s long-standing investors. Apis Partners, Crossfin Holdings, and the IFC have supported iKhokha since its early days. Dean Sparrow, CEO of Crossfin Holdings, expressed pride in iKhokha’s journey. “We are extremely proud of what has been achieved by the iKhokha team and the fact that we have found a great home for the business, its people, and the SME market it serves,” Sparrow said.
Apis Partners’ Matteo Stefanel and Udayan Goyal echoed this sentiment. “We are incredibly proud of how far iKhokha has come, from a promising fintech startup to one of South Africa’s leading payment providers,” they said.
The investors are confident that Nedbank will help iKhokha scale its mission of financial inclusion.
Nedbank Group CEO Jason Quinn emphasised the broader impact of the acquisition. “Empowering entrepreneurs is essential to building a thriving and inclusive economy,” Quinn said.
“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 in South Africa and potentially abroad.”
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