Naspers bets on India
Naspers has set its sights on India and the Middle East as market that will command a larger chunk of the e-commerce “donut” in years to come.
South Africa’s Internet and media company has already made several acquisitions in India in 2013, including an 80% stake in online ticketing platform, redBus for R1 billion.
In July 2013, Naspers acquired an additional 8.6% interest in Flipkart Private Limited, a leading e-commerce site in India, for R1.4 billion in cash. The group now has a 16.7% interest in Flipkart on a fully diluted basis.
Naspers said in its report for the year ended March 2013, that it had acquired a 10% interest in Flipkart for R858 million in cash in August 2012, following the completion of a 4th round of $150 million funding from MIH – part of Naspers Group – and Iconiq Capital.
In October, it was reported that Flipkart.com aimed to raise $125 million in a fresh round of funding from existing, and new investors, including Naspers.
During June 2013, Naspers and Chinese Internet company, Tencent, announced a restructuring of their partnership in India after the option to subscribe for new shares in MIH India Global Internet Limited (MIH India), held by Tencent, expired.
MIH India operates e-commerce platforms under the ibibo brand, and under the new arrangement, Tencent would look after social businesses, while Naspers would focus on e-commerce.
The group previously accounted for MIH India as a joint venture.
The fair value of the total deemed purchase consideration was R321 million, being the acquisition date fair value of the interest held in MIH India.
Middle East
In July 2013, Naspers acquired an additional interest of 28.6% in Dubizzle, an online classifieds platform based in Dubai for R939 million, consisting of R477 million in cash for the additional interest and R462 million being the acquisition date fair value of the existing interest held in Dubizzle.
The group’s total interest in Dubizzle increased to 53.6%
The group also made various smaller acquisitions in 2013, at a combined cost of R193 million.
In June 2013 the group acquired an additional 6.1% interest in Souq Group, an online retailer, marketplace and payment platform business, with operations in the UAE, Saudi Arabia, Egypt and Kuwait, for R296 million in cash.
Naspers now commands a 35.8% interest in Souq Group.
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