Naspers Has Invested More In Indian Companies Than South Africa’s Tech Sector In Recent Years

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Written by Peter Pedroncelli
Indian Companies
An Indian man checks the Flipkart site on his mobile phone in New Delhi, India, Wednesday, May 9, 2018. Walmart is paying $16 billion for a controlling stake in India’s giant online retailer Flipkart, breaking into a fast-growing economy where it has struggled to establish a foothold.(AP Photo/Manish Swarup)

Africa’s most valuable company, Naspers has investments throughout the world, but India has been a major focus for the company in the last few years.

Naspers has invested heavily in tech firms from India, selling one for $2.2 billion in 2018, according to MoneyWeb.

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In the last financial year, the South African consumer tech giant invested almost $1.5 billion in three Indian tech companies. That’s more than three times the estimated $460 million the company has invested in the South African tech sector since 2011, Ventureburn reports.

Naspers’ single best move was investing $36 million in Chinese investment holding company Tencent in 2001. That 31 percent stake is now worth $133 billion. 

Naspers is worth around $108 billion and invests mostly in technology businesses around the world.

Investing in Indian companies

Investments in Indian companies including food delivery startup Swiggy, fintech PaySense, and jobs platform Aasaanjobs represented almost half of Naspers’ $3.1 billion in tech investments in the year up to March 31, according to its 2019 provisional financial statements.

Since 2011 Naspers has invested more than $2.3 billion in Indian startups. It reclaimed most of that in a single exit following the 2018 sale of its 11 percent stake in Indian e-commerce firm Flipkart for $2.2 billion,ITWebAfrica reported.

After initially investing in 2012, Naspers sold its 11.18 percent stake in Flipkart, India’s largest property in the e-commerce space, to Walmart for $2.2 billion.

By comparison to its investments in India, Naspers has invested an estimated $460 million in the South African tech sector since 2011, Ventureburn reports.

The investor’s home market, South Africa, represents 4 percent of its revenue according to its financial statements. India’s 1.3 billion population and a growing economy are attractive for the consumer tech firm.

Naspers is considering an investment in Indian social commerce startup Meesho, which is looking to raise $120 and recently received a $25 million investment from Facebook, India’s Economic Times reports.

Naspers, which is listed on the Johannesburg and London Stock Exchanges has stakes in around 45 technology and media companies around the world.