Financial services corporation Nedbank set to purchase iKhokha for R1.65bn, a move aimed at bolstering their Small and Medium-Sized Enterprises (SME) digital services.
In a strategic move to enhance its support for South Africa's Small and Medium-sized Enterprises (SMEs), Nedbank Group has announced a binding agreement to acquire 100% of iKhokha Proprietary Limited for approximately R1.65bn. The acquisition, announced on 12 August 2025, is subject to customary regulatory approvals and is expected to conclude in the coming months.
iKhokha, a fintech innovator, processes over ZAR20 billion annually in digital payments and has distributed more than ZAR3 billion in working capital to SMEs. By acquiring iKhokha, Nedbank plans to leverage its fintech capabilities, such as accessible cash advances and payment tools, alongside its own deep banking expertise to offer SMEs best-in-class digital financial products.
The acquisition aligns with Nedbank’s vision of digital transformation in the SME sector and fostering an inclusive economy. SMEs account for about 80% of employment and R5 trillion (approximately $269 billion) in annual revenue in South Africa. iKhokha will continue to operate under its own brand and leadership team, ensuring continuity and leveraging existing customer trust.
According to Jason Quinn, Chief Executive of Nedbank Group, the acquisition of iKhokha will empower entrepreneurs. He suggests that there may be potential for the expansion of these opportunities abroad. The management lock-in is intended to ensure managerial continuity and alignment with long-term growth objectives.
The iKhokha transaction marks a significant milestone in Nedbank's strategy to support SMEs through digital innovation and inclusive financial services. The acquisition is expected to strengthen and scale Nedbank's positioning in the SME market, accelerate SME customer growth, increase financial inclusion, and provide underserved SMEs with better access to affordable working capital and tailored digital services.
This move is expected to drive SME sector empowerment and economic growth. The integrated approach seeks to create a sticky ecosystem combining payments, credit, and analytics that differentiates Nedbank from competitors like Capitec and FirstRand, potentially boosting its market share in the growing $65 billion African fintech market projected by 2030.
In conclusion, the strategic impact is to deepen Nedbank's SME market presence through enhanced digital and financial services, improve SME access to capital and financial management tools, and support SME business growth and sustainability in South Africa. The acquisition of iKhokha is a significant milestone in Nedbank's strategy to unlock new opportunities for growth and financial inclusion in South Africa.
[1] Fin24 [2] BusinessTech [3] MyBroadband [4] ITWeb
- The acquisition of iKhokha, a fintech innovator in digital payments and working capital for SMEs, by Nedbank Group signifies a strategic move to leverage technology and finance for business growth, aligning with the bank's vision of digital transformation and fostering an inclusive economy in South Africa.
- By integrating iKhokha's fintech capabilities with Nedbank's deep banking expertise, the acquisition aims to provide affordable working capital, deployment of digital services, and accelerated SME customer growth, positioning Nedbank as a leader in South Africa's growing fintech market and driving SME sector empowerment and economic growth.
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