In a significant development in the African fintech landscape, Nedbank Group has announced the acquisition of iKhokha, a leading South African payments fintech, in an all-cash deal valued at ZAR 1.65 billion (approximately $94 million).
Founded in 2012, iKhokha has established itself as a trusted partner to South African entrepreneurs, offering a suite of affordable and accessible SME cash advances, payment, and business management tools. The acquisition aims to deepen Nedbank’s support for small and medium-sized enterprises (SMEs) through enhanced digital and inclusive financial services.
Following the acquisition, iKhokha will operate as a wholly owned subsidiary of Nedbank but will continue to operate under its own brand and leadership team. The deal includes a management lock-in to ensure continuity and alignment with long-term growth strategies.
Jason Quinn, Chief Executive of Nedbank Group, emphasized the alignment between iKhokha’s mission and Nedbank’s vision for digital transformation in the SME sector. He stated, “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. Together, we will unlock new opportunities for growth and financial inclusion in South Africa and potentially abroad.”
Ciko Thomas, Group Managing Executive for Personal and Private Banking at Nedbank, added, “This acquisition is a natural evolution of our existing relationship with iKhokha, and we are incredibly excited to welcome iKhokha to our Nedbank family. The acquisition is a pivotal moment in our strategy to empower the SME market. By combining their innovative technology with our deep banking experience, we will provide small business clients with the best-in-class tools they need to thrive.”
The acquisition is expected to conclude in the coming months, subject to customary regulatory approvals. This move positions Nedbank to capture growth in the burgeoning African fintech market, which is projected to reach $65 billion by 2030.
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