When Nedbank announced its R1.65 billion ($93 million) acquisition of iKhokha on August 13, 2025, it wasn’t just a banking headline—it marked a defining moment in South Africa’s fintech evolution. A 13-year-old Durban-based startup, built to empower small and medium-sized enterprises (SMEs), is now being folded into one of Africa’s oldest financial giants.
The deal reflects a bigger trend: traditional banks accelerating their digital push through fintech acquisitions rather than building solutions from scratch. Nedbank, which already counts 7.6 million clients and assets of R1.4 trillion ($75 billion), sees iKhokha as its gateway to deeper SME engagement. By marrying iKhokha’s nimble mobile payments platform with Nedbank’s scale, the partnership could give South Africa’s small businesses easier access to digital tools, financing, and regional growth opportunities.
iKhokha co-founder Matthew Putman insists this is more “growth story” than takeover. The startup will retain its brand, staff, and leadership while operating as a wholly owned subsidiary. “For our merchants, nothing changes—except that now we have a big brother and new opportunities,” he told TechCabal.
Since its founding in 2012, iKhokha has carved a niche among informal traders and SMEs with affordable card readers and simple onboarding. In a country where cash dominates and only 20–30% of small businesses have access to formal credit (FinMark Trust), its offering has been transformative. With Nedbank’s balance sheet and 400 branches, 4,100 ATMs, and 110,000 point-of-sale devices, iKhokha could evolve from a payment facilitator into a full financial services hub for small traders across Africa.
The acquisition comes at a time when consolidation in African fintech is accelerating. Rising competition, regulatory pressures, and the threat of global tech entrants have pushed local players toward mergers. Stitch, for example, bought ExiPay and Efficacy Payments earlier this year to expand its footprint.
Still, acquisitions in Africa often spark fears of culture clashes and brand dilution. Canal+’s takeover of Multichoice, for instance, raised concerns about losing African creative roots. But Putman says Nedbank made it clear: “They are not looking to change our successful formula. If anything, they want to invest in the growth story.”
If regulators approve, iKhokha could soon expand beyond South Africa, leveraging Nedbank’s presence across Southern and East Africa. For SMEs struggling with access to credit and digital infrastructure, this deal could mark a turning point—one where fintech ingenuity and banking muscle finally converge.
