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Tag: Naspers

  • Naspers elevates CEO Mahanyele-Dabengwa to join company board

    Naspers elevates CEO Mahanyele-Dabengwa to join company board

    Naspers SA on Monday announced that Phuthi Mahanyele-Dabengwa, the current CEO of Naspers South Africa, will join the company’s board. Mahanyele-Dabengwa’s appointment to the board is seen as a significant move for the company, reflecting its commitment to leadership diversity and strategic growth.

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    Background on Phuthi Mahanyele-Dabengwa

    Phuthi Mahanyele-Dabengwa has been a transformative figure in the South African business landscape. She joined Naspers as CEO of South Africa in July 2019, making history as the first black woman to hold this position within the company. Her leadership has been characterised by a focus on innovation and investment in technology, which is crucial for Naspers as it navigates the rapidly changing media and entertainment sectors.

    In her own words, Mahanyele-Dabengwa stated:  “As one of the country’s largest investors, Naspers is committed to driving growth and creating opportunities that benefit our communities”. 

    Her role on the board is expected to enhance Naspers’ strategic direction and governance, leveraging her extensive experience in both local and international markets.

    Read also: Zenith Bank opens Paris branch to support African-European trade relations

    Naspers enhances board with tech veteran

    The inclusion of Mahanyele-Dabengwa on the board is anticipated to bring fresh perspectives to Naspers’ strategic discussions. Her background in investment and technology can help guide the company through challenges in an increasingly competitive environment. 

    Furthermore, this move aligns with broader trends in corporate governance that emphasise the importance of diversity and inclusion at the highest levels of decision-making. Companies across industries are increasingly recognising that diverse leadership teams lead to better decision-making, enhanced innovation, and improved overall performance.

    Naspers has been widely acknowledged for its proactive efforts to improve representation within its leadership ranks. The company has demonstrated a consistent commitment to fostering a more inclusive environment by prioritising diversity in gender, ethnicity, and expertise in its executive appointments. The appointment of Phuti Mahanyele-Dabengwa to the board is a strong testament to this ongoing commitment. Her wealth of experience, coupled with her proven leadership skills, not only enriches the board’s strategic capabilities but also reflects Naspers’ dedication to mirroring the diverse markets it serves.

    Phuthi Mahanyele-Dabengwa’s addition to the Naspers board marks a pivotal moment for the company and highlights its ongoing dedication to fostering diverse leadership while navigating complex market dynamics.

  • Prosus, Naspers CEO Bob van Dijk steps down

    Prosus, Naspers CEO Bob van Dijk steps down

    With immediate effect, Bob van Dijk, the chief executive of Dutch e-commerce investment Prosus and Naspers, the latter of which is the company’s principal shareholder, has resigned from the top role, including his positions on the boards.

    Ervin Tu, who was previously the Group chief investment officer at Prosus, has been promoted to the position of interim chief executive officer for the companies that hold significant investments in major software, payments, edtech, and food delivery organisations and startups all over the world.

    The companies have not disclosed the reason that van Dijk, who is 50 years old, resigned but have stated that the decision was made through “mutual” agreement. The news announcement sent by the companies unusually did not include a remark from van Dijk, who had acquired the post of chief executive officer at the companies in 2014.

    Someone with knowledge of the companies suggested that the transition had been planned for some time, as van Dijk had accomplished almost all of the goals he had outlined for himself. This was the case because van Dijk had achieved almost all his goals. For the next year, he will maintain his role as a consultant to the boards.

    Read also: E-commerce giants, Naspers, Prosus to lay off staffs 

    More on how he managed Prosus and Naspers

    Van Dijk leaves office having resolved one of the complicated problems that arose during his tenure as commissioner. During his lengthy time at Naspers, the company struggled to keep up with the rising value of its holding in Tencent, where it is still the single-largest stakeholder.

    In 2019, van Dijk listed Prosus to handle the Tencent interest, and it also initiated actions to remedy the value gap. These measures included buybacks of Tencent shares and the sale of Tencent shares.

    His cross-shareholding system between Prosus and Naspers, which was criticised for its difficulty due to its intricacy, was constructed by him and ultimately dissolved by him. On Monday, the cross-shareholding structure that had existed between the two companies was finally eliminated.

    During his tenure at the company, Prosus also placed aggressive bets in several international countries, including India. Today, the portfolio companies owned by Prosus are at the forefront of the food delivery, online learning, and payments processing businesses in India.

    “The group’s strategic goals remain unchanged, and it is on target to deliver on its commitments, including achieving consolidated ecommerce trading profit during the first half of FY25,” the companies said.

    Other details

    Naspers’ rise to prominence as a significant worldwide investor was catalysed by a 2001 investment of 32 million dollars in Tencent of China. Over the course of the past twenty years, Naspers has strengthened its position as the preeminent supporter by investing money in a variety of businesses. Some of these businesses include StackOverflow, Delivery Hero, Trip.com, Udemy, PayU, Byju’s, Swiggy, and Meesho.

    After the departure of numerous other senior employees, notably Larry Illg, a longtime investor who supervised Prosus’ investments in the food and edtech industries, Van Dijk has decided to leave the company. In the month of July, Prosus criticised Byju’s, the most valuable edtech startup in the world, for failing to adhere to proper reporting and governance practices at its Bengaluru-based headquarters.

    In addition, Prosus is working to divest a growing number of its businesses and reduce its operating expenses. It sold PayU’s global business to Rapyd, a company based in London, for $610 million last month. The deal did not include PayU’s businesses in India, Turkey, or Southeast Asia. As the economic climate deteriorated over the course of the previous year, the company decided to abandon its high-profile, $4.7 billion acquisition of payments behemoth BillDesk.

    Tu, a seasoned dealmaker who joined Prosus from SoftBank two years ago, made this statement in a press release: “Prosus is operating with momentum. I am honored to assume the role and help shape the future of the Group. I couldn’t be more excited about the team around me and to get started.”

  • Naspers Foundry, venture capital fund closes

    Naspers Foundry, venture capital fund closes

    The R1.4 billion (about $100 million) Naspers Foundry venture capital fund has ceased operations. Naspers is the most valuable technology business on the African continent by market value.

    The corporation will maintain its investments in its nine portfolio companies, some of which include Planet42, SweepSouth, Naked, Aerobotics, and WhereIsMyTransport, such as issuing follow-on checks.

    The corporation is putting this concept into practice while venture capital suffers globally.

    In line with the strategy it employs worldwide through Prosus Ventures, which will no longer have a dedicated team focused on South African entrepreneurs, Naspers is reportedly matching its efforts with that of Prosus.

    Naspers’ local investments are now to be maintained by Prosus Ventures.

    Read also: SA Women entrepreneurs secure Naspers and Grindstone accelerators

    A representative for Naspers said, “Both the local SA investment environment and the worldwide investment environment have changed, and we have made it plain that our company needs to adapt.

    We have updated our early-stage investment strategy in SA to align it with our global strategy in line with changes made to the larger business.”

    “Naspers will continue to assist the growth of SA’s early-stage technology sector, evaluating the market and new prospects in a manner consistent with our other global markets,” the company said.

    The aim of Naspers Foundry

    Naspers Foundry was established in 2019 with the purpose of providing financial assistance to South African startups in the Series A and B stages of their development. These startups must be aligned with the internet businesses on which Naspers focuses, such as food, payments, or classifieds, and they must also be digital ventures that address societal needs. When asked by TechCrunch at the time about its plans for its venture capital allocation, Naspers Foundry stated that it would invest over a period of three years. Although this time frame has passed, the venture capital firm had only deployed half of its fund size before deciding to pull the plug.

    Although it is simple to point the finger at the global economic slowdown as the cause of Naspers Foundry’s closure, the company did face other challenges that were specific to South Africa, such as its relationship with the country’s Competition Commission.

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    Other Matters that contributed to this decision

    Last July, the commission released a report revealing some institutions that excluded historically disadvantaged persons (HDPs), including people of color and women, from the country’s internet economy. Naspers Foundry was one such company; of the R700 million disbursed funds to 23 founders, only 13% were people of color, and 8% were women, further highlighting the diversity problems facing South Africa’s startup and VC landscape. In 2019, the commission also infamously blocked Naspers’ bid to buy 60% of WeBuyCars. 

    According to local investors, the commission maintained this aggression over the years and prevented Naspers Foundry from making specific deals for fear of being too dominant. They have expressed displeasure with the outcome; however, some believe stabilizing solutions are being put in place to fill in the void left by the venture capital firm, which has been a source of growth and development for South African startups.

    As a company, whatever decision Naspers has taken is valid at its own discretion.

  • E-commerce giants, Naspers, Prosus to lay off staffs 

    E-commerce giants, Naspers, Prosus to lay off staffs 

    The e-commerce giant Naspers, which has its headquarters in South Africa, and the European subsidiary of its parent company plan to lay off thirty percent of their workers. “We are reacting to a changing macro environment and have been working for some time to enhance our cost structures,” the company Prosus said in a statement that was made public.

    During an interview, Bob van Dijk, the Chief Executive Officer of Prosus, stated that the reduction in staff will take place over the course of the next year and will impact around 15 different sites. Johannesburg and Amsterdam house the majority of the company’s corporate headquarters.

    Read also: Luno to lay off 35% of its workforce 

    The truth is that the macro environment has grown much more challenging and has undergone significant shifts recently. This also indicates that there has been a significant change in the cost of capital because interest rates and risk premiums have both increased,” he went on to say.

    The number of people working at Naspers and Prosus was approximately 30,000 as of March 2022. It is estimated that approximately 9,000 workers could be made redundant as a result of this particular round of layoffs.

    According to Van Dijk, Prosus will also make an effort to reduce expenses at the more than 80 businesses in which it has invested, but these initiatives will take place on different timescales and dimensions.

    Investment With Other Companies 

    Prosus owns or has investments in a number of companies, including OLX, Property24, Udemy, PayU, AutoTrader, and DeliveryHero, while Naspers owns three major entities: Prosus, Takealot, and Media24. Prosus is owned by Naspers.

    This is the most recent round of layoffs that have been disclosed over the course of the past couple of months. Both Google and Microsoft have announced plans to let go of personnel in the range of 10,000 and 12,000, respectively.

    The Naspers share price in Johannesburg finished the day down 1.7%, while the Prosus share price in Amsterdam was down 0.2% at 5:15 p.m. on Wednesday.

    About Naspers

    The field of student affairs is represented by its professional organization, NASPER. Together, they are committed to realizing the potential that lies within higher education by adhering to the guiding principles of our institution: integrity, innovation, inclusivity, and inquiry. They make the students the focal point of their work, and they contribute to the industry by providing exceptional professional development, conducting research to address the most pressing issues, advocating for inclusive and equitable communities and practices, and cultivating networks and pipelines to mentor, reenergize, and support.

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    About Prosus 

    Prosus N.V., also known simply as Prosus, is a global investment organization that invests and operates in a variety of different markets and industries that have the potential for long-term growth. It is one of the largest investors in technology on the whole wide planet.