South African based e-commerce giant, Naspers, is planning to invest over $335 million (R4.9bn) in South African technology companies. The announcement was made at the inaugural South Africa Investment Conference 2018 in Johannesburg last week.
Out of the $335 million, it will allocate $219 million (R3.2bn) to the development of its existing technology businesses, including OLX, Takealot, and Mr D Food, and $96 million (R1.4bn) to a new startup fund called Naspers Foundry.
Naspers Foundry aims to fund and support South African technology start-ups seeking to address big societal needs and also help talented and ambitious South African technology entrepreneurs to develop and grow their businesses.
According to Naspers chief executive Bob van Dijk; “Technology innovation is transforming the world.” “The Naspers Foundry aims to both encourage and back South African entrepreneurs to create businesses which ensure South Africa benefits from this technology innovation.”
“The group started in South Africa and understands the innovative and entrepreneurial spirit of South Africans,” said van Dijk. “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.”
Naspers CFO Basil Sgourdos added, “When we invest in an entrepreneur, we are able to bring much more to the table than just funding: we understand what it’s like to build and grow tech businesses, and we share that knowledge to help them succeed. We also recognise the important role that local businesses can play in boosting local economies, which in turn boosts the wider South African economy. That’s why a significant portion of the Naspers Foundry investment will be focused on black-owned South African start-ups.”
The Naspers Foundry will launch during 2019.
