Nedbank Acquires iKhokha to Expand SME Digital Services

Nedbank Group has announced the acquisition of South African fintech company iKhokha in a cash deal valued at approximately $93 million. This move marks a significant step in Nedbank’s broader strategy to empower small and medium-sized enterprises (SMEs) through digital innovation and inclusive financial services.

Founded in 2012, iKhokha has gained recognition for providing affordable payment solutions and digital tools tailored for small businesses. With services ranging from mobile point-of-sale (mPOS) devices and business management apps to working capital support, the company has supported thousands of entrepreneurs across South Africa. Its digital platform processes over R20 billion in payments annually and has disbursed more than R3 billion in business funding to merchants.

Combining Fintech Agility with Banking Infrastructure

Through this acquisition, Nedbank aims to integrate iKhokha’s agile fintech model into its traditional banking ecosystem, creating a seamless service offering for SMEs. iKhokha will continue to operate under its brand as a wholly owned subsidiary, with its existing leadership team remaining in place to ensure continuity and innovation.

Nedbank officials emphasized that this partnership will enable the bank to serve small businesses more effectively, providing them with faster, smarter, and more accessible financial tools. The bank sees the acquisition as a long-term investment not only in digital transformation but also in economic development, by helping local entrepreneurs scale and sustain their businesses.

The deal also marks a successful exit for iKhokha’s investors, including major venture capital and development finance institutions. With this new backing, iKhokha is expected to expand its reach, enhance its technology offerings, and potentially explore markets beyond South Africa.

This acquisition positions Nedbank as a key player in Africa’s growing fintech ecosystem, signaling its commitment to digital financial inclusion and to building future-ready solutions for the continent’s most dynamic business segment—its SMEs.