South Africa's Naspers has invested a further $775 Million More Into Delivery Hero, an online food and delivery marketplace. This increases Naspers' stake in the company to 23,6% after it initially invested $421 million into the company in May 2017.
The investment sees Naspers buying the shares from Rocket Internet to increase its shareholding in the online food and delivery company.
“Delivery Hero is already the leading online food ordering and delivery marketplace in most of the countries in which it operates and our increased investment demonstrates our confidence in the long-term prospects for the company. The food delivery sector is still underpenetrated and growing rapidly across the world. Many markets have experienced significant traction already, but we believe the potential is far greater in high-growth markets than that observed in the West,” said Bob van Dijk, CEO at Naspers.
Delivery Hero had its IPO earlier in June 2017, a month after the initial Naspers investment.
“We are delighted that Naspers is increasing its stake in Delivery Hero. We share the same long-term belief in our business and we will continue to benefit from their experience to grow our business globally,” said Niklas Östberg, CEO at Delivery Hero.
Naspers has recently been accused of potentially being a 'one trick pony' given its significant stake in China's Tencent. With its growing investments in other technology companies this could see the South African technology investment company diversify its portfolio to not rely heavily on Tencent especially after also recently showing interest in acquiring South Africa's AutoTrader.