Nedbank has acquired Durban-based payments fintech iKhokha for R1.65-billion in an all-cash deal.

According to Nedbank, the acquisition marks a “significant milestone” in the bank’s strategy to deepen its support for small and medium-sized enterprises.

“The acquisition is a pivotal moment in our strategy to empower the SME market,” said Ciko Thomas, group managing executive for personal and private banking at Nedbank.

“By combining their innovative technology with our deep banking experience, we will provide small business clients with the best-in-class tools they need to thrive.”

Founded in 2012, iKhokha provides mobile point-of-sale solutions to SMEs. iKhokha products include card machines and a mobile app that allow merchants to accept card payments, with added business management tools to give merchants more operational control over their businesses.

iKhokha was co-founded by Matt Putman, Ramsay Daly and Clive Putman with a vision to develop and deliver business tools that can “help anyone thrive in business”.

Expansion

Matt Putman has served as the company’s CEO since 2012. In a statement, he said: “There is great alignment across both leadership teams on the synergies that can be unlocked through this transaction, and we believe our combined strengths will result in a truly differentiating and highly competitive value proposition for SMEs in market.”

iKhokha’s operations are currently limited to South Africa. However, according to Putman, the partnership with Nedbank opens the door to the exploration of other markets on the continent.

The Nedbank transaction marks a successful exit for iKhokha’s longstanding investors, Apis Partners, Crossfin Holdings and the International Finance Corporation. Crossfin has been an investor in iKhokha since its inception.

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“We are extremely proud of what has been achieved by the iKhokha team to date and the fact that we have found a great home for the business, its people and the SME market it services,” said Crossfin CEO Dean Sparrow.

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