For online education startups scattered across Africa, this is probably the best time to look for funding as Africa’s biggest company Naspers Group Ltd. has opened its doors for them.
“People are forced to be at home in many instances at the moment, and online education platforms are doing very well,” Chief Executive Officer Bob van Dijk said in an interview with Bloomberg “There is a lot of activity going on, and we are seeing initial opportunities. You could see us grab some of them, but we will continue to be diligent to make sure we catch the right ones.”
Here Is All You Need To Know
- According to Naspers, the coronavirus pandemic has meant that online education startups are proving a hit as schools close and lockdowns keep people at home.
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“I think we will find that the outbreak will actually be a catalyst for more online activity in the world,” he said.
- Naspers has previously invested in online education sites such as Brainly and Udemy in the U.S., while in late 2018 the company led a $540 million investment in India’s BYJU . Codecademy, specializing in digital education, is offering scholarships for people stuck at home and wanting to add to their skill-set, Van Dijk said.
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“We have a strong cash position — even in the worst case scenario, we have the balance sheet to weather the storm,” the CEO said. “We have the capacity to do further M&A, and that gives us a lot of confidence in the future.”
A Look At What Naspers Does
- Naspers is on the top 100 largest global companies list — 85th by its $108 billion market cap, just after Nike — and is one the world’s largest tech investors.
- Aside from operating notable internet, video and entertainment platforms, Naspers has made significant investments in Europe, India, Asia and South America.
- Naspers was also an early investor in Chinese tech group Tencent, selling $10 billion in shares this year after a $32 million investment in 2001.
- The company recently carved out a new holding company, called Prosus NV, to relist a portion of its assets on Amsterdam’s Euronext stock exchange.
- In Africa’s tech ecosystem — which only recently surpassed $1 billion annually in VC funding — Naspers Foundry’s recently launched $100 million fund could shift the startup financing lead back toward South Africa.
- In 2019, the company spun off its international internet businesses into Amsterdam-listed Prosus NV, with the Cape Town-based company retaining a majority shareholding. The jewel in its crown is a 31% stake in Tencent Holdings Ltd., China’s biggest company, which it backed as a startup. The company also has interests in food delivery, fintech and classified advertising as well as other online-focused businesses.
- Naspers’s classifieds business has seen a slump in traffic as economic growth is hammered by the virus, while food delivery has struggled with supply issues even in many countries where it’s exempt from lockdown regulations. However, online businesses may emerge stronger from the crisis if people permanently change the way they work and educate themselves, according to Van Dijk.
- Naspers shares have gained 13% this year, valuing the company at 1.13 trillion rand ($63 billion).
Charles Rapulu Udoh
Charles Rapulu Udoh is a Lagos-based lawyer who has advised startups across Africa on issues such as startup funding (Venture Capital, Debt financing, private equity, angel investing etc), taxation, strategies, etc. He also has special focus on the protection of business or brands’ intellectual property rights ( such as trademark, patent or design) across Africa and other foreign jurisdictions.
He is well versed on issues of ESG (sustainability), media and entertainment law, corporate finance and governance.
He is also an award-winning writer.