The Competition Commission has recommended that the Competition Tribunal approve Nedbank’s proposed R1.65-billion acquisition of financial technology company iKhokha, without conditions.
“The Commission is of the view that the proposed transaction is unlikely to substantially lessen or prevent competition in any market,” it stated.
“The proposed transaction does not raise significant public interest concerns.” With such a recommendation from the Commission, the deal will unlikely face significant obstacles.
Nedbank announced in August 2025 that it entered into a binding agreement to acquire 100% of iKhokha in an all-cash deal for approximately R1.65 billion, subject to certain adjustments upon conclusion.
The acquisition will see iKhokha become a wholly owned subsidiary of Nedbank, while continuing to operate under its own brand and leadership team.
The acquisition includes a comprehensive management lock-in to ensure managerial continuity and alignment with long-term growth objectives.
It also marks a successful exit for iKhokha’s long-standing investors, Apis Partners, Crossfin Holdings, and the International Finance Corporation.
iKhokha and Nedbank said these investors played a pivotal role in supporting the management team in scaling iKhokha’s operations and product innovation.
Crossfin has backed the iKhokha founders from the initial concept in early 2012 to become a uniquely positioned business.
iKhokha has established itself as a trusted partner to South African entrepreneurs. It offers a suite of accessible SME cash advance, payment, and business management tools.
“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.”
Putman said there was great alignment across both leadership teams and that the acquisition opens the door for them 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,” he said.
From nightclubs to fintechs
Founded in 2012, the seed for iKhokha was planted during Putman’s university years when he was co-owner of a nightclub.
“I had been involved in a nightclub as a part-time owner whilst at varsity, which is another story in itself and taught me many life lessons,” Putman told The Founder Files in a November interview.
“One of the things that I experienced there was we had a card machine from one of the Big Four banks, and it was a terrible experience.”
The Big Four then were Absa, FNB, Nedbank, and Standard Bank. Capitec had been established and was growing rapidly, but was still small in comparison. None of the digital banks existed yet.
Putman explained that he and co-founder Ramsey Daly grew up in entrepreneurial households. His father, Clive Putman, has a PhD in electronic engineering and started businesses in the security hardware space.
This environment shaped Putman’s ambition to be an entrepreneur from a young age. His early ambition was to find something to “sink his teeth into and scale” and to “do things differently,” avoiding a traditional job.
“Having sold that nightclub, I was working with my old man on a side project that he’d taken on, having exited one of his businesses, and I was trying to get inspiration.”
Putman said he subscribed to Fortune and Time Magazine to learn about innovation trends in places like the U.S., where the Internet revolution was in full swing.
Fortune carried an article about Twitter co-founder Jack Dorsey’s new venture, a payments company called Square (since rebranded to Block).
The article sparked the idea of using mobile phones to help small businesses accept card payments, a service no one had implemented in South Africa yet.
“We wrote my father in, who obviously had the hardware engineering chops and had actually built technology businesses before. Then we built a prototype,” said Putman.
Nedbank pushing SME support
In its announcement about the deal, Nedbank said the move marks a significant milestone in Nedbank’s strategy to deepen its support for small and medium-sized enterprises (SME).
“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.
“The acquisition is a pivotal moment in our 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.”
Nedbank group chief executive Jason Quinn said iKhokha’s mission and technology align perfectly with the bank’s vision for digital transformation in the SME sector.
“Together, we will unlock new opportunities for growth and financial inclusion in South Africa and potentially abroad,” he said.
Source: https://mybroadband.co.za/
