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Nedbank is acquiring 100% of the fintech company, which forms part of its bid to support small and medium-sized enterprises (SMEs) through digital innovation and inclusive financial services.
The transaction is subject to customary regulatory approvals and is expected to conclude in the coming months.
Founded in 2012, iKhokha has grown rapidly amongst South African entrepreneurs, offering affordable, accessible SME cash advances, payment and business management tools.
Founded by Matt Putman, Ramsay Daly and Clive Putman, iKhokha processes north of R20 billion annually in digital payments. It has also distributed more than R3 billion in working capital into the SME sector.
The acquisition will see iKhokha become a wholly owned subsidiary of Nedbank, while continuing to operate under its brand and leadership team.
“This acquisition is a natural evolution of our existing relationship with iKhokha, and we are incredibly excited to welcome iKhokha to our Nedbank family,” said Ciko Thomas, Group Managing Executive for Personal and Private Banking.
“By combining their innovative technology with our deep banking experience, we will provide small business clients with the best-in-class tools they need to thrive.”
“Together, we will unlock new opportunities for growth and financial inclusion in South Africa and potentially abroad,” added Nedbank Group CEO Jason Quinn.
The transactions also mark a successful exit for iKhokha’s long-standing investors, Apis Partners, Crossfin Holdings and the International Finance Corporation.
The original investors have confidence that Nedbank will help the brand in its next growth phase.
“This is a proud moment for both the founders and the broader iKhokha leadership team,” said Matt Putman, CEO and co-founder of iKhokha.
“Joining forces with Nedbank gives us the platform to scale our impact, further accelerate product innovation, and unlock new value for our merchants.”
The acquisition includes a comprehensive management lock-in to ensure managerial continuity and alignment with long-term growth objectives.
Issued on BusinessTech by Luke Fraser | https://businesstech.co.za/news/banking/834822/nedbank-buying-one-of-south-africas-fast-growing-companies-for-r1-65-billion/
