South African payments startup, iKhokha, says it will continue to operate under its own brand after being acquired by Nedbank for R1.65 billion ($93 million).
Matthew Putman, iKhokha’s co-founder, disclosed that the deal was about growth rather than integration into a traditional bank.
“The business will continue to run as per normal,” he told TechCabal. “We will keep our brand, our staff, and our independence. For our merchants, nothing changes, except that now we have a big brother and new opportunities to expand what we offer.”
According to him, the 13-year-old fintech, which provides card readers and mobile payment tools to informal traders and small businesses, will become a wholly owned subsidiary of Nedbank once regulatory approvals are completed.
Focus on Expansion
Putman stressed that pricing and product changes are not expected in the short term. He added that the focus is more on expanding services rather than changing existing ones.
“The things our merchants love—our ease of onboarding, the products, the level of care—none of that will change,” he said. “If anything, they will gain access to more products and services on the back of Nedbank’s capabilities. This is very much a growth story.”
The startup has long worked with Nedbank on payments processing and transactional banking. Putman said the two companies had built a relationship of trust over the years.
Nedbank, which serves 7.6 million clients in South Africa, operates over 400 branches, 4,100 ATMs and more than 110,000 point-of-sale devices. Its Money App has 2.8 million users, with digital transactions up 15% in June.
According to Putman, the deal will allow iKhokha to reach markets it could not have entered alone.
“Nedbank brings pieces of the puzzle we did not have, like deep banking knowledge, a strong balance sheet, and complementary distribution channels, while we bring digital innovation and our SME merchant network. Together, we can build one platform that better serves SMEs.”
Industry Context
Access to credit is one area where iKhokha expects to benefit. Research shows only 20%–30% of SMEs in Africa have access to formal loans.
With Nedbank’s R1.4 trillion ($75 billion) balance sheet behind it, analysts say iKhokha could extend services beyond payments to help small businesses grow.
According to industry leaders, the acquisition reflects a wider trend of consolidation in South Africa’s fintech sector as competition heats up. Stitch, another digital payments company, has made two acquisitions this year: ExiPay in January and Efficacy Payments in July to expand its services.
While some banks are building in-house technology, others are buying fintech firms to fast-track their digital push. Nedbank’s acquisition of iKhokha signals its bet that combining the resources of a major bank with the agility of a fintech company can give it an edge in SME banking.
Talking Points
The acquisition of iKhokha by Nedbank is a significant signal of how traditional banks and fintechs can converge to create real value for small businesses.
What stands out is that iKhokha will keep its brand and operational independence, showing Nedbank’s recognition of the fintech’s strong identity and loyal merchant base.
At Techparley, we see this as a pivotal moment for South Africa’s SME economy. With Nedbank’s backing, iKhokha could evolve from being just a payments partner into a full financial services platform that enables small businesses to not only survive but grow.
The move also fits into a broader trend of consolidation in Africa’s fintech sector, where competition is intensifying and global players are circling. Rather than building from scratch, traditional banks like Nedbank are choosing acquisitions to accelerate their digital strategies.
This signals that fintechs with strong merchant networks and scalable technology are increasingly attractive targets.
