Beyond the tech bubble: How Prosus is reimagining its India strategy

Last month, Prosus, the Netherlands-based investment arm of South Africa’s Naspers, received approval from the Competition Commission of India (CCI) to acquire a minority stake in Vastu Housing Finance, a home loan provider.

The deal stood out for several reasons. It marked Prosus' largest investment in India since 2022 and was only the second new company it backed in 2024. Most notably, it was Prosus' first-ever investment in a non-tech Indian company. Prosus’ parent, Naspers, which began as a newspaper and magazine publisher, has traditionally focused on technology investments since it shifted to investing in the 1990s. The pivot was driven by the belief that the publishing industry was in decline with the rise of television.

Despite suffering early setbacks in China during the dotcom crash, Naspers made a bold $30 million investment for 40% of Tencent, which turned out to be a game-changer. Naspers’ $30 million bet has since generated billions in returns, with the company still holding unrealised gains worth over 100 billion dollars.

The Tencent investment not only delivered massive returns for Naspers but also set the strategy that would guide the South African investor for the next two decades. The approach was straightforward: make substantial investments in leading tech companies, acquire significant stakes, and patiently wait for returns through acquisitions or public listings.