South Africa-headquartered media and e-commerce group Naspers has announced a R1.4bn ($96m) corporate venturing initiative called Naspers Foundry that will invest in domestic startups.
Naspers has been an active participant in corporate venturing for a long time, its most prominent deal being a $32m investment in China-based internet group Tencent in 2001 that is now worth hundreds of billions of dollars.
The company set up a dedicated unit known as Naspers Ventures in 2016 and its other investments include Brazil-based mobile services provider Movile and online food delivery platforms Delivery Hero and Swiggy.
Naspers Foundry will invest in South Africa-based technology startups in addition to offering assistance to help them grow their companies. It intends to channel “a significant proportion” of the capital to black-owned startups, according to chief financial officer Basil Sgourdos.
The fund will be launched next year and will make up part of a R4.6bn commitment to the South African tech sector, with the rest earmarked to help grow the firm’s existing portfolio.
Bob van Dijk, chief executive of Naspers, said: “We believe the best ideas often start locally, with passionate entrepreneurs starting businesses that meet the needs of the communities they know best.
“And when those needs are universal across the markets we know well, with the right backing, there is the future potential for their businesses to grow beyond their home market.”
