Naspers. (Duncan Alfreds, Fin24)
Johannesburg - Naspers [JSE:NPN] is in talks to lead an investment of
as much as R2.5bn ($200m) in India’s Swiggy to increase its stake in the online
food-delivery company, according to two people familiar with the matter.
Africa’s biggest company by market value plans to team up
with China’s Tencent Holdings to put together the new financing round, said the
people, who asked not to be named as the information isn’t public.
Naspers owns 33% of Tencent, which drives profit growth at
the Cape Town-based technology and media company.
The talks come after Larry Illg, the head of Naspers’s new
investments unit, told investors at a meeting in New York in December that
order volumes at Swiggy have more than doubled year-on-year and that the global
food delivery industry is still at an early stage of development.
Naspers and Tencent see significant opportunities to
co-invest in India, Chief Executive Officer Bob van Dijk said in the same
presentation, without mentioning Swiggy.
Jane Yip, a spokeswoman for Tencent, didn’t respond to a
request for comment sent by email and text message.
Naspers invested an initial $80m (R988m) in Swiggy in May.
That preceded a €660m ($790m) purchase of shares in Germany’s Delivery Hero
AG in September.
The company also has interests in iFood in Brazil and Mr
Delivery in South Africa. Food is one of many online industries targeted by
Naspers as it seeks investments to replicate the success of Tencent.
Swiggy is the largest food delivery business in India. Talks
between the company, Naspers and Tencent are advanced, according to one of the
Naspers shares have gained more than 70% in the past 12
months to R3 620.06, valuing the company at R1.6 tr ($129bn). That’s less than
the $179bn valuation of the Tencent stake, and Van Dijk has pledged to try to
close that gap.
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