Nedbank to Acquire South African Fintech in $93M Cash Deal
TLDR
- Nedbank has signed a binding agreement to acquire Durban-based payments fintech iKhokha in an all-cash deal valued at R1.65 billion ($93.3 million)
- The acquisition, subject to regulatory approval, is expected to close in the coming months
- The transaction delivers an exit for investors Apis Partners, Crossfin Holdings, and the International Finance Corporation
Nedbank has agreed to acquire Durban-based payments fintech iKhokha in an all-cash deal valued at R1.65 billion ($93.3 million). The acquisition, subject to regulatory approval, is expected to close in the coming months.
iKhokha will retain its brand identity and leadership under a management lock-in. Founded in 2012, the company provides mobile point-of-sale devices, a payments app, and business management tools. It processes over R20 billion ($1.1 billion) annually in digital payments and has disbursed more than R3 billion ($169.7 million) in working capital to SMEs.
Nedbank says the deal aligns with its strategy to digitally empower entrepreneurs, with Ciko Thomas, Group Managing Executive for Personal and Private Banking, calling it “a pivotal moment” for SME initiatives. iKhokha CEO Matt Putman sees the acquisition as an opportunity to scale innovation and expand value for merchants.
The transaction delivers an exit for investors Apis Partners, Crossfin Holdings, and the International Finance Corporation, who have supported iKhokha’s growth.
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Key Takeaways
The deal underscores a wider trend of traditional banks acquiring fintechs to remain competitive in digital-first banking. For Nedbank, integrating iKhokha’s agile, tech-driven model could accelerate innovation and broaden SME financial access. For iKhokha, the backing of a major bank offers the capital, regulatory reach, and network to scale faster in a competitive payments market. By combining Nedbank’s financial infrastructure with iKhokha’s merchant-focused tech, the acquisition positions both to deepen financial inclusion and strengthen their foothold in South Africa’s fast-growing digital payments ecosystem.
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