Naspers to spend $1 bn for Indian fintech investments

Chennai: Naspers, Africa’s largest company based on market value, is gearing up to spend $1 billion in India in the form of investments focused on the financial technology market, reports state.

Naspers is looking for investments that can replicate the success it had in investing in Tencent, the Chinese technology giant, said reports.

Tencent also operates WeChat, the wildly popular messaging app. Naspers is Tencent’s largest shareholder even after scaling backs its holdings last year.

In March it sold 190 million shares in Tencent earning it about $9 billion in cash. That reduced its stake to 31.2 per cent from 33.2 per cent. At the time Naspers said proceeds would go toward growth opportunities in global classified, online food delivery and FinTech.

The FinTech market is attractive to investors because the financial industry has long been in need of disruptions.

The African internet and media company has already invested in Indian startups, but reports state the firm’s focus to date has been on food delivery in the country.

In December it led the $1 billion fundraising round for Swiggy, the Indian online food company.

Reports also state Naspers is already in talks with Capital Float, an Indian lender, and Wimbo, a payments startup, about investing some $200 million. It will mark the first efforts to put the $1 billion to work, noted the report.

Naspers launched in 1915 as a newspaper publisher but has seen its valuation skyrocket thanks to its Tencent investment. It also owns a stake in Delivery Hero of Germany. It previously owned Flipkart, the Indian eCommerce company, before selling it to Walmart.

Indian startups received a combined $10.5 billion in funding last year. In 2017 startups raised $10.4 billion with 1,141 rounds and in 2016 funding stood at $4.3 billion.

NT Bureau