Nedbank’s $90 Million Acquisition of iKhokha to Boost South African SMEs
Nedbank, a leading financial institution in South Africa, has announced the acquisition of the fintech startup iKhokha for $90 million (approximately R1.65 billion), a move designed to provide significant support to the nation’s small and medium-sized enterprises (SMEs). The all-cash transaction, which is anticipated to be finalized in the coming months pending necessary approvals, highlights Nedbank’s commitment to empowering entrepreneurs by granting them access to innovative digital tools and services that foster business growth within the South African economy. This acquisition solidifies Nedbank’s presence in the evolving landscape of African fintech.
iKhokha: A Fintech Powerhouse for SMEs
Founded in Durban in 2012 by Matt Putman, Ramsay Daly, and Clive Putman, iKhokha has established itself as a key enabler for South African SMEs. The company provides easy-to-use card machines, digital payment solutions, and other business tools, catering to the unique needs of these enterprises. Annually, iKhokha processes over R20 billion in payments and facilitates more than R3 billion in working capital loans, reflecting the critical role it plays in supporting SME operations. The acquisition by Nedbank is expected to enhance iKhokha’s reach and capacity to deliver these vital services.
In essence, Nedbank acquires fintech startup iKhokha with the aim of strengthening South African small businesses.
This strategic acquisition marks a significant step in Nedbank’s strategy to accelerate the growth of SMEs by leveraging iKhokha’s technology and market expertise. It shows the institution’s confidence in iKhokha’s ability to contribute to a more inclusive financial ecosystem and drive economic development across South Africa.
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