Media giant Naspers has bought 30% of MXit for an undisclosed amount.
MXit, a locally-developed instant messaging service for mobile phones, allows users to send and receive text messages using a mobile phone at less than the cost of an SMS.
Naspers recently bought a 30% stake in Russian Internet company Mail.ru, for the equivalent of R1.2 billion.
"MXit entertained investment offers locally and internationally for more than 12 months and we set ourselves strict criteria in terms of investment, culture and synergies," says founder and CEO Herman Heunis.
"We are very excited about teaming up with a South African company that has such an extensive global footprint, not only in media but other technology sectors."
Naspers global Internet CEO Antonie Roux says: "MXit has a wonderful product and an impressive entrepreneurial management team. We are delighted at the prospect of working with them."
MXit, which has about three million users, made headlines recently when an alleged paedophile made use of it to lure a 16-year-old girl. He allegedly abducted the teenager and held her captive for five days.
The South African Police Services then reportedly used the service in a planned sting operation to capture the man. The creators of MXit have since aligned themselves with South African law enforcement to further secure minors' safety when using MXit.
MXit has also come under fire from parents, who say the service affects their children's schoolwork.
Related stories:
Naspers marches into Russia
Naspers eyes China for growth
Share