Naspers shuts down its $77m investment fund, Foundry, the largest in South Africa

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March 13, 2023
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2 min read

The news:

  • Naspers has shut down its South Africa-focused technology investment fund, Foundry.
  • The fund valued at R1.4 billion ($77 million) has only been deployed halfway — R740 million $40 million.
  • Naspers will, however, maintain the investment it has already made in startups.

Naspers is one of the largest companies in Africa, with a market cap of R1.3 trillion ($71.3 billion). It is a media and global Internet group that invests in technology companies.

Its South Africa-focused investment fund, Foundry, was launched to invest in early-stage startups across South Africa.

Today, March 13, 2023, BusinessDay reports that Naspers has shut the R1.4 billion (~$77 million) fund to slim its operations as venture capital takes a hit globally.

A Naspers spokesperson told BusinessDay, "The global investment environment, as well as the local SA one, has changed, and we have made clear the need for our business to adapt."

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"In line with changes across the wider business, we have reviewed our early-stage investment strategy within SA to bring it in line with our international approach. Naspers will continue to support the development of SA's early-stage tech sector, assessing the market and new opportunities in a way that is consistent with our other global markets."

Per TechCabal, the fund, which launched in 2014, has only been deployed halfway. Naspers was part of Planet42's $100 million mega-round in February 2023, Naked's $17 million in 2023, and WhereIsMyTransport's $14 million in 2021.

The news of Naspers Foundry shutdown is coming a few weeks after Naspers revealed its plan to reduce its workforce by 30%. With one of South Africa's largest funds shutting down, SA's early-stage startup might see a funding slowdown in 2023.

Featured image source: Ventureburn

He's a geek, a sucker for Blockchain and an all-round tech lover. Find me on Twitter @BoluAbiodun1.
He's a geek, a sucker for Blockchain and an all-round tech lover. Find me on Twitter @BoluAbiodun1.
He's a geek, a sucker for Blockchain and an all-round tech lover. Find me on Twitter @BoluAbiodun1.

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