Africa’s largest tech investor, Naspers Limited has announced additional funding for Takealot, its eCommerce startup in South Africa.
Naspers said in statement that it putting additional ZAR960 million into Takealot Online (Pty) Ltd
This is a follow up funding from Tiger Global and Naspers in 2015 and underlines the continued commitment to Takealot and confidence in the potential of South Africa’s ecommerce sector.
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.
“We are super excited about this latest investment as it will allow us to continue to grow the business in a market with huge potential. Naspers has been a wonderful supporter of our business and we are grateful for their ongoing commitment and show of confidence in both the business and the market. This is great news for our customers and employees alike.” Said Takealot Founder and CEO Kim Reid.
“The team continues to drive exciting growth and shows great promise in a market we expect to go from strength to strength. We are pleased to support their ambitions to build an enduring ecommerce business for South African consumers and Takealot’s partners alike” said Oliver Rippel, CEO, B2C Ecommerce, Naspers.
Takealot has filed a large merger notification with the South African Competition Commission in anticipation of finalising the investment from Naspers, which would make Naspers the majority shareholder in Takealot.
Naspers has one of the majority stake in Konga, OLX and other tech startups with presence in Nigeria. The company has not announced a new funding round for these ventures.