Financial technology start-up iKhokha, situated in South Africa, has been bought by Nedbank for 94 million dollars.
Nedbank Group, a leading African banking group, has announced the acquisition of South African fintech startup iKhokha. The deal, valued at ZAR1.65 billion (US$94 million), is a significant move that promises to reshape the financial landscape for Small and Medium Enterprises (SMEs) in South Africa and potentially across the African continent.
Strengthening SME Support in South Africa
The acquisition aims to bolster Nedbank's digital offerings for SMEs, combining iKhokha's innovative fintech solutions with Nedbank's extensive banking experience. This integration will provide SMEs with comprehensive digital payment, credit, and business management tools.
iKhokha, founded in 2012 by Matt Putman, Ramsay Daly, and Clive Putman, has been instrumental in making financial services more accessible and affordable for hundreds of thousands of entrepreneurs in South Africa. Matt Putman, one of the founders, expresses his pride about the acquisition by Nedbank.
The merger aligns with Nedbank's vision for financial inclusion, enhancing SMEs' access to capital and real-time financial solutions, fostering economic growth and stability. By acquiring iKhokha, Nedbank positions itself as a leader in South Africa's SME fintech sector, which is crucial given that SMEs account for a significant portion of employment and economic activity in the country.
Expansion into Other African Markets
The acquisition sets the stage for scaling iKhokha's digital payment infrastructure and credit scoring tools across Africa. This could help Nedbank tap into the expanding African fintech market, projected to reach $65 billion by 2030.
By leveraging iKhokha's technology, Nedbank can extend its financial inclusion efforts beyond South Africa, potentially unlocking growth opportunities in other African countries and contributing to the development of thriving and inclusive economies.
The acquisition provides Nedbank with a unique competitive edge in the African fintech landscape. Unlike competitors, Nedbank can offer a comprehensive suite of digital payments, credit, and analytics, creating strong relationships with SME customers.
Ciko Thomas, group managing executive for personal and private banking at Nedbank, expresses excitement about the acquisition of iKhokha. The merger with Nedbank is expected to unlock synergies and create a differentiating value proposition for SMEs.
The acquisition is still subject to customary regulatory approvals and is expected to conclude in the coming months. The iKhokha leadership team believes the acquisition will provide a platform for scaling impact and product innovation.
iKhokha's founders, Matt Putman, Ramsay Daly, and Clive Putman, have been entrepreneurs in the fintech industry, focusing on making financial services more accessible and affordable for SMEs in South Africa. The acquisition by Nedbank Group will bolster Nedbank's position as a leader in South Africa's SME fintech sector and provide a platform for scaling iKhokha's digital payment infrastructure and credit scoring tools across the African continent.
By positioning itself as a leader in the African fintech sector, Nedbank aims to tap into the expanding African fintech market, which is forecasted to reach $65 billion by 2030. The acquisition of iKhokha offers Nedbank a unique competitive edge by providing a comprehensive suite of digital payments, credit, and analytics services, fostering strong relationships with SME customers.
With the acquisition of iKhokha, Nedbank can extend its financial inclusion efforts beyond South Africa, potentially unlocking growth opportunities in other African countries and contributing to the development of thriving and inclusive economies.
