Nedbank Group has agreed to acquire fintech company iKhokha for approximately R1.65 billion to enhance support for small and medium-sized enterprises in South Africa.

Information on the Target

Nedbank Group, a prominent financial services provider in South Africa, has announced a definitive agreement to acquire 100% of iKhokha, a leading fintech innovator. The acquisition transaction, valued at approximately R1.65 billion, is aimed at enhancing Nedbank's commitment to supporting small and medium-sized enterprises (SMEs) through innovative financial solutions. Founded in 2012, iKhokha has positioned itself as a trusted partner for South African entrepreneurs, providing a range of accessible financial services, including cash advances, payment solutions, and business management tools. Following the acquisition, iKhokha will operate as a subsidiary of Nedbank while maintaining its distinct brand and leadership.

Ciko Thomas, Group Managing Executive for Personal and Private Banking, expressed enthusiasm for the acquisition, emphasizing its significance in empowering SMEs. By integrating iKhokha’s innovative technology with Nedbank’s extensive banking expertise, the partnership seeks to equip small business clients with necessary tools to succeed. Jason Quinn, Chief Executive of Nedbank Group, reinforced this vision, highlighting the alignment of iKhokha’s mission with Nedbank's goal of driving digital transformation within the SME sector, ultimately fostering growth and financial inclusivity.

Industry Overview in South Africa

The South African SME sector plays a crucial role in the country's economy, contributing significantly to job creation and growth. It is increasingly recognized as a key driver of economic activity, with SMEs representing a vast majority of businesses in the region. This sector has, however,