Nedbank Drops R1.65 Billion on iKhokha! Why This Deal Matters 💰

Big news in the South African fintech scene! Nedbank has officially acquired iKhokha, the Durban-based payments fintech, for a cool R1.65 billion in an all-cash deal. This move signals Nedbank's serious commitment to supporting small and medium-sized enterprises (SMEs) in the country.

Why is this acquisition a big deal?

According to Nedbank, this acquisition is a “significant milestone” in their strategy to deepen their support for SMEs. Ciko Thomas, group managing executive for personal and private banking at Nedbank, stated that combining iKhokha's innovative technology with Nedbank's banking experience will provide small business clients with best-in-class tools.

iKhokha, founded in 2012, provides mobile point-of-sale (mPOS) solutions to SMEs. Their offerings include card machines and a mobile app that enable merchants to accept card payments, along with business management tools for better operational control.

iKhokha's Vision and Future

Co-founder and CEO of iKhokha, Matt Putman, believes that the partnership with Nedbank will unlock significant synergies and create a highly competitive value proposition for SMEs. While iKhokha's operations are currently limited to South Africa, the deal opens doors to explore other markets on the African continent.

• Benefits for SMEs: Access to advanced payment solutions and business management tools.
• Nedbank's Strategy: Strengthening its position in the SME market.
• iKhokha's Future: Potential expansion into other African markets.

This acquisition also marks a successful exit for iKhokha’s investors, including Apis Partners, Crossfin Holdings, and the International Finance Corporation. Crossfin has been an investor since iKhokha's inception.

The move underscores the growing importance of fintech solutions in empowering South Africa's informal sector and driving financial inclusion.