The founders of iKhokha, one of the fastest growing fintech companies in Africa, are set for a R1.65bn windfall after they agreed to sell the business to Nedbank as it fine-tunes its strategy to grow and win market share in the highly competitive business banking segment.
The transaction gives Nedbank a sizeable business, which it said processes more than R20bn annually in digital payments and has distributed more than R3bn in working capital to small and medium-sized enterprises (SMEs) so far.
The Durban-based iKhokha was co-founded by Matt Putman, Ramsay Daly and Clive Putman, and has since its establishment in 2016 redefined the way SMEs do business through mobile innovation.
Nedbank, worth more than R110bn on the JSE, has identified SME lending as the next battleground among SA’s lenders.
The iKhokha transaction is expected to advance Nedbank’s SME growth blueprint, where it already commands a 24% market share.
Nedbank CEO Jason Quinn said the transaction includes a management lock-in to ensure managerial continuity and alignment with long-term growth objectives.
“iKhokha’s mission and technology align perfectly with our vision for digital transformation in the SME sector. Together, we will unlock new opportunities for growth and financial inclusion in SA and potentially abroad,” Quinn said.
The buyout by Nedbank will see the exit of iKhokha’s mainstay investors, including Apis Partners; Crossfin Holdings; and the World Bank’s commercial arm, the International Finance Corporation. After the completion of the deal, IKhokha will retain its name and be a fully owned subsidiary of Nedbank.
Matt Putman, iKhokha’s CEO, said the transaction provides a platform to scale and accelerate product innovation.
“There is great alignment across both leadership teams on the synergies that can be unlocked through this transaction and we believe our combined strengths will result in a truly differentiating and highly competitive value proposition for SMEs in the market.
“It also opens the door for us to explore expansion into other strategic markets on the continent. We remain committed to our mission of empowering entrepreneurs and building tools that help small businesses thrive.”
Quinn has led the shake-up of the group’s retail and business banking divisions. The restructuring led to the creation of business and commercial banking, a juristic-focused cluster that will cover SMEs and commercial clients.
Nedbank has also restructured the business to place greater emphasis on mid-sized corporates, typically those businesses with an annual revenue of R1bn and above, with the lender targeting a market share of 25%.
To bolster its ambitions to win more market share, Nedbank in July announced the appointment of Andiswa Bata as its next managing executive of its business and commercial unit subject to regulatory approval. Bata’s most recent role was that of FNB Business CEO — the country’s largest business banking franchise.
Ciko Thomas, Nedbank’s managing executive for personal and private banking, said iKhokha’s purchase is a “pivotal moment” in the group’s strategy to empower the SME market.
“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,” he said.
Nedbank has not been oblivious to the stern competition it faces from its traditional rivals for market share in business banking, and from the likes of Capitec, which has outlined plans to disrupt the segment — as it did the retail banking space.
Nedbank wrote in its 2024 annual report that SME banking has emerged as the next battleground, driven by enhanced digital capabilities at incumbent banks and the entry of non-traditional competitors. “Key investor concerns include the potential impact of Capitec replicating its retail market successes in the SME market.”
Capitec’s retail banking successes are well documented, with the Stellenbosch-based outfit having grown its client base to 24-million, making it SA’s largest bank by customer numbers.
Business banking generally refers to the services used by small companies, while commercial or corporate banking refers to the services used by large enterprises with a high turnover.
According to data from the Banking Association SA, SMEs’ total economic output accounts for about 34% of GDP. However, the International Finance Corporation estimates a funding gap for the sector amounting to $30bn.
Standard Bank and Absa also have substantial business banking franchises, which they are also looking to scale up. With Jacqueline Mackenzie
Update: August 13 2025
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