South Africa’s largest online retailer, Takealot Group, recorded a 15% rise in full-year revenue, reaching $872 million (in local currency terms) for the fiscal year ending March 31, according to its parent company, Naspers, on Monday.
The growth was underpinned by strategic investments in logistics, improved customer offerings, and the company’s loyalty-based subscription service. However, despite the uptick in revenue, Takealot posted an adjusted EBIT (earnings before interest and taxes) loss of $13 million, reflecting ongoing challenges in a fiercely competitive e-commerce landscape.
The group’s flagship platform, Takealot.com, which competes directly with Amazon, saw its gross merchandise value rise by 13%, with revenue climbing 17% and a 15% increase in order volumes.
Takealot also owns Mr D, an on-demand delivery service catering to restaurants, grocery stores, and other retail outlets.
“We were actually pleasantly surprised by Takealot’s performance over the past year,” said Nico Marais, Chief Financial Officer of Naspers and Prosus, in an interview with Reuters. “We made deliberate investments in our marketplace, and while Amazon entered the market, their expansion has been slower than we initially anticipated, which gave us breathing room to strengthen our position.”
Amazon officially launched in South Africa in May 2024, quickly expanding its offering to include non-perishable groceries, intensifying the battle for online consumer spending. Both local and international players are now pouring resources into capturing market share.
To maintain its lead, Takealot plans to boost its subscription programme, TakealotMore, aimed at increasing customer retention. The company also intends to widen its product range in key categories and cut costs by improving delivery logistics and inventory management.
As part of its forward-looking strategy, the company is also turning to artificial intelligence, aiming to better understand customer behaviour, spot emerging trends, automate customer service, and personalise marketing campaigns.
With Amazon’s presence growing, South Africa’s e-commerce sector is poised for heightened competition in the year ahead.
