On Monday, March 13, Naspers took an ax to his venture capital fund, Naspers Foundry, and put the kibosh at R1.4 billion (~$77 million) in funding. From now on, the fund’s portfolio companies and any additional investments will be managed by Prosus Venture.
The Foundry was born in October 2019, when Naspers’ South African CEO, Phuthi Mahanyele-Dabengwa, stated that it would invest in startups that are a good fit for the parent company’s internet-based businesses, such as food, payments and advertising. But the fund was also open to any digital company that met a social need, such as edtech and agritech startups.
To date, the Foundry has invested more than R700 million (approximately $40 million) in a dozen edtech, mobility and insurtech startups. All of these companies are still around, which is encouraging. However, none of them have yet reached unicorn status or even had an exit, a crucial metric for judging the effectiveness of a venture capital fund.
But that wasn’t the only problem with Naspers Foundry’s portfolio. Last year, the South African Competition Commission released this a report calling out companies for imitating the Spartans’ krypteia. Several companies, including Naspers, had excluded historically disadvantaged persons (HDPs), including people of color. Only three of the 23 receiving founders were people of color, while two were women.
Yet we cannot overlook its impact. Let’s take a look at the fund’s portfolio companies and how they fared after receiving checks.
SweepSouth
SweepSouth, an online cleaning services platform that connects customers with household cleaners, was Naspers Foundry’s first investment in June 2019, when the fund provided the startup with a $2.1 million check for its Series A round. Founded in 2014 by Aisha Pandor and Alen Ribic, SweepSouth has had mixed fortunes so far. While it raised $11 million in September 2022 to develop and grow its infrastructure and team in South Africa, roll out new services in existing markets, and pursue expansions and acquisitions across the African continent and beyond, it also has problems encountered in Nigeria and Kenya. where it has had to cut budget and workforce.
Planet42
Planet42, a car subscription startup that offers an inclusive car subscription service to customers who don’t have access to traditional bank credit, was funded in December 2021 by Naspers Foundry as part of its $5 million funding round. Based in South Africa but founded in Estonia, the startup received another check from Naspers Foundry in February 2023 as part of its recent $100 million funding round. The startup is currently focused on ramping up its business in South Africa and expanding into the Mexican market.
Naked insurance
Naked Insurance, an insurtech startup that provides customers with an end-to-end digital platform to manage their insurance experience online, received $11 million from Naspers Foundry in August 2021 for its Series A round. The startup raised another $17 million in February 2023 in a Series B round led by the International Financing Corporation (IFC). Naked Insurance is currently expanding its team as part of an effort to redesign its value chain.
Aerobotics
Aerobotics, a Cape Town-based agritech startup that provides tree crop health and intelligence data to the agricultural sector using drones and satellite-driven AI technology, received $5.6 million from Naspers Foundry in January 2021 as part of the $17 million Series B round. The startup launched a yield management platform in July 2022 that provides farmers with tools to measure, manage and protect their yields.
Ctrl
Ctrl, a digital insurance advisor that allows users to compare policies using an app, received $2 million from Naspers Foundry in July 2021 as part of its Series B funding round. The insurtech startup is currently rolling out its app in South Africa and plans to focus on that market for now.
Float pays
Floatpays, a fintech startup that gives employees access to a portion of their earned income any time of the month through a mobile app, received $1 million from Naspers Foundry in February 2022 as part of its $4 million funding round. The startup, which was founded in 2019 and was an alumnus of the Summer 2021 YCombinator batch, recently received Heavy Chef’s South Africa’s Top 5 Most Exciting Startups Award.
Food supply network
Naspers Foundry invested $1 million in Food Supply Network, a food tech startup that provides an online marketplace connecting manufacturers, distributors and buyers. Since the money was received in September 2020, the startup has expanded from South Africa, Namibia and Zambia to Angola, with plans to reach other African countries.
Nile.ag
Nile.ag is an agritech startup that aims to connect farmers with business buyers through its online marketplace. Naspers Foundry contributed $5.7 million to Nile.ag’s May 2022 seed round, and the startup is currently expanding its reach in southern Africa.
Life check
Launched in 2018, Life Cheq is a fintech platform that provides personalized financial advisory solutions for individuals and businesses. Following Naspers Foundry’s $2.5 million Series A investment in May 2022, the Cape Town-based startup has expanded its operations across South Africa.
The Student Hub
The Student Hub is an edtech startup that partners with accredited technical and vocational education and training (TVET) schools to deliver online courses, increasing access to vocational education and reducing delivery costs. The Naspers Foundry invested $2.9 million in the startup’s December 2020 funding round, and The Student Hub is currently expanding its product offerings to South African tertiary institutions.
Valentine Institute
Valenture Institute is a UK-based edtech startup offering a global private high school online curriculum recognized by leading universities. The startup, currently operational in South Africa, raised $7 million in September 2020, with Naspers Foundry contributing an undisclosed amount.
Where’s My Transportation
WhereIsMyTransport is a mobility startup that maps formal and informal public transport networks and uses the data to improve the public transport experience and make commuting safe and accessible. Naspers Foundry co-led the startup’s $14.5 million Series A extension in June 2021, contributing $3 million to the round. As of May 2022, WhereIsMyTransport had mapped 50 cities in Africa, Latin America, Southeastern Europe and Asia.
Naspers Foundry launched on the back of huge media hype. TechCrunch predicted that Naspers would be a springboard for South African VC funding. But as we have seen, that is not the case. South Africa’s reputation as an attractive destination for venture capital funding has not improved. Instead of, it has fallen. And with Naspers Foundry gone, let’s not forget that it takes more than a $100 million VC to boost a market.