When Nedbank, one of South Africa’s biggest banks, revealed on August 13 that it had agreed to acquire iKhokha for about R1.65 billion (over $93 million), the announcement drew attention not only for the price tag but also for its significance. A 13-year-old fintech startup from Durban, created to support South Africa’s small and medium-sized enterprises (SMEs), was set to be absorbed into one of the continent’s oldest and most established banking giants.
Nedbank’s takeover of iKhokha forms part of its broader strategy to enhance its digital capabilities and strengthen its SME banking portfolio. By merging iKhokha’s mobile payments technology with Nedbank’s scale, the deal is expected to provide small businesses with improved tools, expand financial inclusion, and extend the bank’s market reach.
Speaking to TechCabal, iKhokha co-founder Matthew Putman stressed that the focus moving forward is on growth rather than simply being absorbed into a larger institution. “The business will continue operating as usual,” he said. “We will function as a wholly owned subsidiary of Nedbank, but our brand, staff, and independence remain intact. For our merchants, nothing changes—except that we now have the backing of a major partner and fresh opportunities to expand our offerings.”
Pricing and product adjustments will remain on hold until regulatory approvals are finalized, but according to Putman, the priority is on expanding services rather than altering existing offerings.
“The features our merchants value—seamless onboarding, our products, and our customer care—will stay the same,” he said. “What will change is access: they’ll benefit from a wider range of products and services powered by Nedbank’s capabilities. This is, at its core, a growth story.”
Acquisitions are often accompanied by concerns over cultural mismatches, brand dilution, or the loss of entrepreneurial spirit. For instance, Canal+’s takeover of MultiChoice sparked worries among local creators about weakening African roots and reduced support for homegrown content.
Putman, however, emphasized that Nedbank has reassured iKhokha of its independence and brand integrity. “The Nedbank leadership team made it clear that they respect what we’ve built—our platform, our brand, and our approach to serving merchants,” he said. “They’re not seeking to alter a proven formula. On the contrary, they want to fuel the growth story by leveraging iKhokha’s strong brand positioning in the SME sector.”
iKhokha will retain its name and continue to be managed by its existing executive team. The company’s staff and its broad merchant base also remain unchanged. Putman noted that informal traders and small shop owners who turned to iKhokha for its simplicity and customer care will experience no disruption in services.