In a bid to bolster their global e‑commerce and tech footprint, South Africa’s Naspers and its Amsterdam‐based subsidiary, Prosus, have embarked on a flurry of high‑impact M&A activity across 2023–2025. With bold acquisitions spanning food‑delivery, travel tech, classifieds, fintech, and education, these companies are re‑affirming their ambitious strategy: diversify beyond their Tencent legacy and build resilient, profitable global “tech ecosystems.”
A wave of blockbuster transactions (2023–2025)
According to M&A databases and company announcements, Prosus has led major deals:
- Dec 2024: €1.7 billion cash acquisition of LatAm online travel agency Despegar, a 33% premium, expected to close by Q2 2025.
- Feb 2025: €4.1 billion (€4.3 billion USD) takeover of Just Eat Takeaway.com, creating the world’s fourth‑largest food delivery platform.
Together, these add ups to roughly $6.4 billion in deal activity since late 2023.
In comparison, a single deal in 2021, Stack Overflow for $1.8 billion and a smaller €610 million divestiture of PayU in 2023, underscore a stark acceleration in Prosus’s M&A velocity.
Why they’re doubling down: Strategy Meets Conviction
- From Tencent legacy to controlled synergies
After decades as the early investor in Tencent, Naspers and Prosus now seek tools they can control – vertical integration with assets they own outright. Successfully combining iFood’s AI-driven logistics capabilities with Just Eat and Despegar showcases this strategy. - Building regional champions
The Despegar deal expands Prosus’s LatAm ecosystem—adding travel to food (iFood), classifieds (OLX), and fintech (PayU)—serving ~100 million users and generating over $500 million EBITDA. - Turning unprofitable into profitable
Just Eat endured an $1.65 billion net loss in 2024, largely from Grubhub. Prosus believes that under its AI/tech playbook, volume growth (GMV increase of 4–8%) and efficiency gains can unlock profitability. - AI at the core
AI-led logistics, pricing, fraud control, and recommendation engines—seen in iFood—form the backbone of these deals. Prosus is replicating this across all acquired platforms. - Strong market conditions
These deals came after Prosus’s 2024 results exceeded targets—$435 million in adjusted earnings, iFood doubling profits, OLX growing 20% in revenue—granting them both capital and credibility.
Can they profit? The potential upsides
- Economies of scale: Shared tech stacks open up operational cost savings and unit economics improvements.
- Cross‑sell and ecosystem monetization: Fintech tools like PayU can integrate seamlessly into travel and delivery platforms.
- Market leadership: Creating category leaders in fragmented regional markets can yield pricing power and network effects.
Risks and historical context
- Execution risk & lofty premiums
Just Eat was bought at a 22–63% premium over market prices, despite mounting losses. If profitability doesn’t follow, investors may sour. - Overpaying and cultural mismatch
The company previously shelled out $7.3 billion for Grubhub only to divest it for $650 million in 2024—a harsh lesson in overpaying in hyper‑competitive markets. - Macro volatility
Emerging market exposures (currency, inflation, regulation) pose threats. Latin America, particularly, has historically been inflation‑sensitive. - Competition and regulation
Regulators have fined iFood for market dominance in Brazil and similar issues could arise in Europe or LatAm. Incumbents like Uber, Meituan, and local challengers remain formidable.
Naspers and Prosus: the backstory
- Naspers, founded in 1915, evolved from South African print media into Africa’s largest tech conglomerate. Its early investment in Tencent (45% stake in 2001) remains its crown jewel, now generating billions for reinvestment.
- Prosus, spun off in 2019, encapsulates global digital assets: classifieds (OLX), fintech (PayU), food delivery (iFood, Swiggy, Delivery Hero), travel (Ctrip), edtech (Udemy, StackOverflow), agriculture tech, and more.
With Fabricio Bloisi at the helm (since mid‑2024), the focus has shifted to deploying capital into high‑impact, high‑synergy acquisitions.
Other global players in the M&A race
- Uber: After divesting its Southeast Asia business (sold to Grab), Uber has acquired Postmates (~$2.6 billion, 2020) and is investing heavily in AI logistics.
- Delivery Hero: Active amidst consolidation in EMEA and LatAm, backed by Prosus.
- Meituan: China powerhouse that continues to expand via acquisitions.
- Booking Holdings & Expedia: Consolidating travel through smaller acquisitions.
But few have the breadth across classifieds, fintech, food delivery, travel, and education that Prosus is assembling.
So, are they right—or wrong?
From an M&A analysis standpoint, this strategy makes sense: acquire regional leaders with scale potential, layer on tech, extract synergies, and build diversified digital ecosystems. The argument is not without merit but execution is critical.
Risks include overpaying, integration failures, increased regulatory scrutiny, macro vulnerabilities, and dependence on breakthrough AI efficiencies. If these don’t materialize, investors may compare this to the Grubhub misstep.
Conclusion
Naspers/Prosus have chosen a high‑risk, high‑reward path. Their global play—built on strategic acquisitions and deep tech integration—is arguably the boldest move any African‑headquartered firm has made in digital M&A. If their integration engine replicates iFood’s success elsewhere, these deals could cement their global stature. But if markets sour, the premium‑payers among them could become millstones.
Ultimately, Prosus stands at a crossroads: can it convert capital and AI into sustainable profits, or will these massive bets backfire?
Summary Table
| Deal | Value | Sector | Strategy | Risks |
| Despegar | $1.7 b | Travel (LatAm) | Ecosystem expansion + region consolidation | Currency, macro, regulatory |
| Just Eat | €4.1 b | Food delivery (Europe) | AI/logistics synergy, scale | Execution, competition, overrisk |
| StackOverflow | $1.8 b (2021) | EdTech | Vertical diversification | Integration |
From the global tech perspective, Naspers and Prosus are doubling down on strategic M&A dams. Whether it forms a formidable moat or falters under weighty ambition remains one of the tech sector’s most compelling stories today.