Nedbank has announced its acquisition of Durban-based fintech iKhokha in a USD 93 million deal in order to boost secure and efficient SME services.
Following this announcement, the transaction is currently subject to regulatory approval, and it is expected to be finalised in the following months.
In addition, according to officials of the company, the initiative is expected to allow the bank to merge iKhokha’s payment technology with Nedbank’s banking infrastructure in order to offer more integrated and secure services to business clients.
More information on Nedbank’s acquisition of iKhokha
Through the process of combining iKhokha’s technology with the bank’s expertise, the financial institution will have the possibility to provide small business clients with optimised tools in order to help them grow and develop in the landscape. At the same time, the companies will continue to focus on meeting the needs, preferences, and demands of clients and users in an ever-evolving market, while prioritising the process of remaining compliant with the regulatory requirements and laws of the local industry as well.
iKhokha was developed in order to deliver mobile point-of-sale products and a business management app that gives merchants and businesses the possibility to process card payments and run day-to-day operations. While iKhokha’s current footprint is limited to the region of South Africa, the Nedbank partnership is expected to open new opportunities for expansion into other African markets.
The acquisition will see iKhokha become a wholly owned subsidiary of Nedbank, while having the possibility to continue to operate under its own brand and leadership team. At the same time, it will also include a comprehensive management lock-in in order to ensure managerial continuity and alignment with long-term growth objectives.
