Africa’s most valuable company Naspers, through its venture investment vehicle, Naspers Foundry has sealed its third funding deal this year. The VC is pitching its tent with Food Supply Network, Naspers Foundry brings global experience, marketplace expertise and extensive networks to the table.
“We’re extremely excited about our partnership with Naspers Foundry. Naspers brings unparalleled global experience, marketplace expertise and extensive networks to the table. Its capabilities complement our own, as well as those of our existing partners at Venturen, which also participated in this round. Naspers shares our vision of optimising the local and global food supply chains in an industry that still relies on manual processes,” FSN founder and CEO Gert Steyn said in a statement.
Here Is What You Need To Know
- Although the precise amount of the funding was not disclosed, Naspers, earlier this year had hinted that it would be investing R100 ($6 million) in each venture.
- In May this year, Naspers SA CEO Phuti Mahanyele-Dabengwa said the company plans to invest a further R300m in local businesses in 2020 through its startup arm.
- Created in October 2018, Naspers Foundry started with R1.4bn and has so far invested R30m in SweepSouth, an Uber-style online platform providing on-demand and regular home cleaning services in 2019; and R100m in agritech business Aerobotics earlier in 2020.
Read also: South African Startups Are Invited To Pitch To Naspers Foundry’s $100 Million Fund
Why The Investor Invested
Naspers, one of the largest technology investors in the world, launched Naspers Foundry, a ZAR1.4 billion (US$96 million) fund to help South African tech entrepreneurs grow their startups, in October 2018, and announced its first deal, a ZAR30 million (US$2.1 million) investment in SweepSouth, in June of last year. Aerobotics is its second investee, though the deal remains subject to the approval of local authorities. Under the new fund, Naspers Foundry will back companies that align with the internet businesses on which Naspers focuses — such as food, payments or classifieds — and any other digital venture that addresses a societal need. On financing size, the Foundry will make equity investments in various amounts, primarily from Series A up to Series B, Mahanyele-Dabengwa said in October 2018.
“The FSN deal is a great addition to our portfolio of early stage tech investments. It’s a classic marketplace model using technology to more efficiently link the three distinct stakeholder groups involved in the process of efficiently ordering and moving food products across the supply chain. We look forward to helping the FSN team continue to grow their business,” Fabian Whate, Head of Naspers Foundry, said about its latest investment in Food Supply Network.
For its VC allocation, Naspers Foundry will make investments over a three-year period.
A Look At What Food Supply Network Does
Food Supply Network’s platform is an independent business-to-business marketplace that integrates ordering systems of manufacturers, distributors and buyers, such as restaurants, hotels and retailers, of food products. The startup alsostreamlines food ordering process while improving stock accuracy and saving time. It also integrates with accounting and point of sale (POS) systems.
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