Naspers is investing R960 million (approximately $70 million) in Takealot (press release) for a majority stake in the South-African online retailer. Naspers will hold about 53,5% of the equity and Tiger Global about 34%.
In a statement on Tuesday, Naspers said the investment follows a 2015 investment from both Tiger Global Management and Naspers and “underlines the continued commitment to Takealot and confidence in the potential of South Africa’s e-commerce sector”.
Naspers-owned Kalahari.com merged with Takealot on 1 February 2015, with Naspers and Tiger Global taking equal stakes of about 41% in the business. That deal was done mainly to create scale, the companies said at the time.
Takealot was launched in mid-2011 after Tiger Global and Kim Reid, a former Naspers executive and now Takealot CEO, acquired e-retailer Take2 and relaunched it with the aim of building South Africa’s biggest e-commerce company.
Takealot has continued its robust growth since its merger with Kalahari in 2014, and boasts a stable of businesses including Takealot.com, South Africa’s leading general etailer, Superbalist.com, the fashion etailer, Mr D Food, South Africa’s largest restaurant food delivery service, and Mr D Courier, its point to point courier service.
Retail remains a highly competitive market in South Africa, and online retail accounts for less than 2% of the non-grocery retail market and less than 1% of the total retail market.
With online retail penetration, according to Euromonitor, in the teens in the US and UK retail markets, and at 17% in China, the potential in South Africa is clear to see.