South Africa’s fintech sector has made headlines with news that Nedbank has agreed to acquire iKhokha in a deal valued at about R1.65 billion, roughly $94 million.
The transaction, announced on 13 August 2025, is still subject to regulatory approvals before it can be finalised, but once complete, iKhokha will become a wholly owned subsidiary of Nedbank while continuing to operate under its own brand and leadership. For Nedbank, the acquisition is a strategic step to expand its small business offerings by combining the bank’s resources with iKhokha’s technology and established merchant base.
iKhokha was founded in 2012 by Matt Putman, Ramsay Daly and Clive Putman, and has grown into one of South Africa’s leading payment platforms for small and medium-sized businesses.
The company currently processes more than R20 billion in digital payments each year and has advanced over R3 billion in working capital to entrepreneurs across the country. The business has become an essential tool for many local merchants, particularly those who previously had limited access to reliable card payment solutions.
The human story behind this transaction traces back to Matt Putman’s time as a student entrepreneur, when he co-owned a nightclub and faced constant frustration with outdated and inefficient card machines. That experience convinced him there was a better way to support small businesses, and together with his partners, he set out to build South Africa’s first locally certified card device. Over the years, iKhokha expanded into mobile point of sale devices, merchant apps, and innovative lending products, all designed to empower small businesses that form the backbone of the economy.
Under the terms of the deal, existing investors including Apis Partners, Crossfin Holdings and the International Finance Corporation will exit, while iKhokha’s management team will remain in place under a lock-in arrangement to ensure continuity.
Until regulatory approvals are secured, the company will continue operating independently, but once finalised, the acquisition is expected to give small merchants greater access to financial tools, more product depth and potentially better pricing, as Nedbank’s balance sheet combines with iKhokha’s speed and innovation.
For South Africa’s fintech landscape, the acquisition is more than just a big-ticket transaction. It signals how far the ecosystem has matured, with a major domestic bank willing to spend billions to secure a home-grown technology success story.
It also demonstrates that solutions born out of everyday struggles, like Putman’s experience with slow card machines in a nightclub, can evolve into platforms with national impact. The coming months will determine how regulators respond and when the deal will close, but for now, the story of iKhokha reflects both the challenges and the promise of entrepreneurship in South Africa.
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