Naspers is banking on investment in AI and logistics to boost Takealot, even as SA’s largest e-commerce platform continues to bleed money.
While Naspers, valued at more than R900bn on the JSE, is primarily focused on its international investments, the group maintains two units in SA — publisher and news outlet Media24 and Takealot.
Takealot is the SA unit most representative of the group’s global ambition to create e-commerce ecosystems in its various operating countries and regions.
In the year to March, Takealot reported another year in the red with an adjusted loss before interest and tax of $13m (R230m) compared with $14m in 2024.
Naspers investors will be hoping for profit, in line with the broader group’s portfolio, which is now cash flow positive for the first time. The issue is magnified, at least for investors, by billions spent in scaling the businesses to a point of profitability. However, this is not unusual.
E-commerce giant Amazon spent years in the red as Jeff Bezos scaled and ploughed an eye-watering amount of capital into developing one of the world’s most formidable logistics, payments and loyalty systems with little to no profit.
And the spending continues, though Naspers group CEO Fabricio Bloisi hopes the transfer of knowledge, skills, technology and best practice from other similar companies in its portfolio will help Takealot.
“The group continues a major programme on upgrading key elements of its platform, to ensure it can easily handle continued growth and expanding services,” Naspers said in its latest annual report, released earlier this week.
In the period, Takealot Group — now made up of Takealot.com and Mr D — reset its medium-term strategy for the next three years and implemented the Naspers management model as part of an effort “to ensure alignment throughout the organisation”.
The group disposed of online clothing retailer Superbalist.com and acquired M24 Logistics from Media24 in September 2024.
Bloisi told Business Day that AI was central to Takealot’s sustainable growth.
The technology was being used to transform operations through “intelligent stock positioning, advanced demand forecasting, fraud monitoring and productivity tools”. He said such implementations would enhance core infrastructure and create competitive advantages for the business.
Takealot.com has 17,092 drivers and 2,289 employees in SA.
Having previously been accused by SA competition authorities of abusing its dominant position to disenfranchise sellers on its platform, Naspers said Takealot “will also continue to look for more ways to support all participants in its ecosystem. This includes exploring ways to help more new businesses participate and succeed.”
In the period, Takealot Group generated about $1.64bn gross merchandise value — the total value of merchandise sold over a given period through a customer exchange site, up 13% over the previous period. Revenue grew 10% in the period to $872m, driven by investments in logistics, enhanced customer offerings and the TakealotMore subscription service.
Mr D revenue grew 8%, with an 81% increase in grocery gross merchandise value and an improved adjusted loss before interest and tax of $4m, “despite tough trading conditions”.
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