Nedbank Group, one of Africa’s largest financial services providers, has announced a binding agreement to acquire South African fintech company iKhokha in a deal valued at approximately ZAR1.65 billion ($94 million). The acquisition marks a major strategic move to expand Nedbank’s presence in the small and medium-sized enterprise (SME) sector, with a strong focus on advancing digital transformation and financial inclusion across South Africa.
Founded in 2012, iKhokha has established itself as a leading provider of card machines, digital payment solutions, and business tools designed specifically for entrepreneurs and SMEs. The company has played a significant role in driving cashless transactions in the country, processing more than ZAR20 billion ($1.14 billion) in annual digital payments and providing over ZAR3 billion ($170 million) in working capital to help small businesses grow.
Nedbank Group CEO Jason Quinn emphasized that the deal aligns perfectly with the bank’s mission to empower entrepreneurs as part of building a robust and inclusive economy. “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,” Quinn stated.
Once the acquisition is finalized, iKhokha will become a wholly owned subsidiary of Nedbank while retaining its existing brand identity and leadership team to ensure operational continuity. The deal includes a management lock-in, securing the commitment of iKhokha’s leadership for the long-term execution of growth strategies.
The transaction, which is subject to customary regulatory approvals, is expected to close in the coming months. It is anticipated to strengthen Nedbank’s digital banking capabilities and create innovative financial products and services tailored for small businesses, many of which remain underserved in the traditional banking landscape.
This announcement comes shortly after Nedbank released its financial results for the six months ending June 30, 2025. Despite challenging economic conditions, the group reported a 6% increase in headline earnings to ZAR8.4 billion ($480 million) and a slight improvement in return on equity to 15.2%. This performance was driven by higher non-interest revenue, increased associate income, improved impairment charges, and disciplined expense management, although net interest income growth remained modest.
By integrating iKhokha’s cutting-edge fintech solutions with Nedbank’s extensive resources, the group aims to accelerate innovation in South Africa’s SME sector, improve access to capital, and enhance digital payment adoption, positioning itself as a key driver of entrepreneurial growth in the country’s evolving financial landscape.
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