Nedbank’s Landmark $92M Acquisition of South African Fintech iKhokha
Nedbank Group Limited has solidified a definitive agreement to fully acquire iKhokha Proprietary Limited, a leading South African fintech firm, in a substantial cash transaction valued at approximately R1.65 billion ($92 million). This strategic move, publicly announced on August 12, 2025, signals Nedbank’s significant expansion into the rapidly growing market for digital services catering to Small and Medium-sized Enterprises (SMEs) across the African continent. The acquisition is currently awaiting regulatory approvals and is anticipated to be finalized in the coming months.
Bolstering SME Digital Services in Africa
Upon the completion of the acquisition, iKhokha will transition into a wholly owned subsidiary of Nedbank. Crucially, the fintech is set to preserve its distinct brand identity and will retain its existing leadership team, ensured by a management lock-in arrangement designed to guarantee operational continuity and foster ongoing innovation. Founded in 2012, iKhokha has established itself as a vital enabler for SMEs, offering a comprehensive suite of solutions including modern card machines, versatile digital payment gateways, and essential business management tools. The company boasts an impressive operational record, processing in excess of ZAR20 billion ($1.1 billion) in annual payments, highlighting its substantial footprint within South Africa’s digital economy. Furthermore, iKhokha has played a significant role in empowering numerous SMEs by disbursing over ZAR3 billion ($166 million) in crucial working capital. Nedbank CEO Jason Quinn articulated the strategic rationale behind this substantial investment, emphasizing its deep alignment with the bank’s core objectives. Quinn stated that the deal “aligns with the bank’s mission to empower entrepreneurs and drive financial inclusion,” underscoring Nedbank’s dedication to fostering economic growth and broadening financial access for businesses throughout the region. This acquisition firmly positions Nedbank at the vanguard of the evolving digital finance sector in South Africa and beyond.
This pivotal acquisition by Nedbank underscores a robust commitment to enhancing digital financial ecosystems for SMEs. By integrating iKhokha’s proven innovative capabilities, Nedbank is set to significantly strengthen its presence in the burgeoning African fintech space, providing expanded digital payment and comprehensive business support services crucial for driving entrepreneurship and fostering inclusive economic development across the region.
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