Nedbank buys iKhokha in R1.65bn deal to boost SME services

Nedbank has agreed to acquire Durban-based fintech iKhokha for R1.65bn in an all-cash deal. The transaction, which is subject to regulatory approval, is expected to be finalised in the coming months.

According to a statement cited in a MyBroadband report, the bank said the acquisition will allow it to merge iKhokha’s payment technology with Nedbank’s banking infrastructure to offer more integrated services to business clients.

Ciko Thomas, group managing executive for personal and private banking at Nedbank, described the transaction as “a pivotal moment” in its SME strategy.

“By combining iKhokha’s technology with our banking expertise, we will provide small business clients with best-in-class tools to help them grow,” he said.

Founded in 2012 by Matt Putman, Ramsay Daly and Clive Putman, iKhokha develops mobile point-of-sale products and a business management app that enables merchants to process card payments and run day-to-day operations.

Putman, who has led the company since its launch, said there is strong alignment between the leadership teams.

“We believe our combined strengths will result in a truly differentiating and highly competitive value proposition for SMEs in market,” he said.

While iKhokha’s current footprint is limited to South Africa, the Nedbank partnership could open the door to expansion into other African markets.

The deal also delivers an exit for iKhokha’s long-term backers, Apis Partners, Crossfin Holdings and the International Finance Corporation.

Crossfin CEO Dean Sparrow said the company was “extremely proud” of iKhokha’s growth and confident that Nedbank would be a strong custodian for its future.

Nedbank CEO Jason Quinn said the acquisition supports the group’s wider push to promote an inclusive, entrepreneur-driven economy.