South African technology, e-commerce and media investment company Naspers has announced an additional investment of $69 million (R960 million) into e-commerce company Takealot, which will likely see Naspers become the single largest shareholder in Takealot as it currently owns 40% of the e-commerce company.
“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 in a statement announcing the investment.
Takealot's merger with Kalahari.net, another South African e-commerce business, was approved in 2015, and the company has continued to grow and attract investment impressively.
“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 e-commerce business for South African consumers and Takealot’s partners alike” said Oliver Rippel, CEO, B2C E-commerce at Naspers.
Naspers will become the largest shareholder in Takealot, ahead of Tiger Global Management. As such, Takealot have filed a large merger notification with the South African Competition
Commission in anticipation of finalising the investment.
Within its portfolio of businesses, Takealot now has Takealot.com, one of South Africa’s leading general e-tailers, fashion e-tailer Superbalist.com, the Mr D Food delivery service, and Mr D Courier, a point-to-point courier service.
This is not the first significant investment for Takealot. In 2015 the company received $51 million (R716 million) investment from Naspers, and a year earlier, Tiger Global Management invested $100 million in the company.
Tiger Global Management is also an experienced investor in the e-commerce space, apart from their investment in Takealot they were also an investor in SOUQ.com which recently which was recently acquired by Amazon.
Naspers has other e-commerce interests, having invested $50 million in Nigeria's Konga in 2014.