Naspers, the Cape Town-based multinational technology and investment giant, has released its financial results for the fiscal year ending. The report sheds light on the performance of its subsidiary, Takealot Group, a major player in South Africas e-commerce sector.
Despite facing a challenging economic environment characterized by high interest rates and inflation, Takealot Group managed to reduce its trading loss to R252 million ($14 million), an improvement from the previous years R400 million ($22.2 million) loss. This progress comes amid normalizing consumer behaviour following the pandemic and intense competition in the South African market.
A notable highlight in the report is the first-time profitability achieved by Mr D, Takealot Groups food delivery and logistics arm. This success stands out against the backdrop of a 2% decline in overall revenue for the Takealot Group, which includes Mr D, the online store Takealot.com, and fashion e-tailer Superbalist. The groups total revenue for the year stood at R14.9 billion ($792 million).
Naspers acknowledged the increasingly competitive landscape, noting that both local and global competitors have intensified their investments in e-commerce capabilities. The company specifically mentioned the entry of international players like Temu and Shein into the South African market, offering budget-friendly products. The impending arrival of Amazon is expected to further intensify competition.
Despite these challenges, Takealot.com managed to grow its gross merchandise value (GMV) by 3% and reduced its trading losses by R75 million ($4 million). The platform also expanded its marketplace seller base, surpassing 10,000 sellers by March 2024.
