Nedbank Group has announced a binding agreement to acquire iKhokha, a South African fintech firm, for approximately ZAR1.65bn ($94m).
This acquisition aims to strengthen the South Africa-based financial services provider’s presence in the small and medium-sized enterprise (SME) market through enhanced digital and inclusive financial services.
iKhokha, established in 2012, offers card machines, digital payment solutions, and business tools tailored for SMEs.
The company caters to South African entrepreneurs and is said to have processed over ZAR20bn ($1.14bn) in digital payments annually and distributing more than ZAR3bn ($170m) in working capital within the SME sector.
Nedbank chief executive Jason Quinn said: “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.”
Following the acquisition, iKhokha will operate as a wholly owned subsidiary of Nedbank but will retain its brand identity and leadership team. The deal includes a management lock-in to ensure continuity and alignment with long-term growth strategies.
Nedbank ranks among Africa’s largest financial services groups, providing banking, insurance, asset management, and wealth management solutions to over seven million clients.
The transaction awaits customary regulatory approvals and is anticipated to conclude in the forthcoming months.
Earlier this month, Nedbank reported its financial results for the six months ending 30 June 2025. Despite challenging market conditions, the group saw a 6% increase in headline earnings to ZAR8.4bn ($480m) and a slight improvement in return on equity to 15.2%.
This growth was driven by non-interest revenue and associate income increases, improved impairment charges, and effective expense management, although net interest income growth remained subdued.
