South Africa’s largest e-commerce company, Takealot Group, has reached a major milestone by reporting its first-ever full-year operating profit after nearly 15 years in business, despite facing increasing competition from Amazon, Temu, and Shein.
The company, owned by Naspers, reported:
– Takealot.com, the group’s flagship online marketplace, generated $906 million in revenue and posted its own operating profit as order volumes climbed 18%.
– Revenue surpassed $1 billion, growing by approximately 19% year over year.
– Food and grocery delivery platform Mr D remained profitable, contributing $138 million in revenue and $4 million in operating profit.
– Adjusted operating profit reached $11 million, reversing a loss of $13 million the previous year.
Winning Despite Amazon’s Arrival: Amazon officially entered the South African market in 2024, creating the biggest competitive challenge Takealot has faced. Instead of engaging in a price war, Takealot adapted its strategy by:
– Expanding its marketplace to include more international sellers, including merchants from China.
– Investing heavily in logistics, warehousing, and fulfillment services.
– Exiting its fashion business, Superbalist, to focus on its most profitable operations.
– Growing its TakealotMORE subscription program to increase customer loyalty.
Why This Counts:
Takealot’s profitability signals that African e-commerce companies can build sustainable businesses even as global technology giants enter their markets. The achievement also reflects growing online shopping adoption in South Africa and demonstrates that efficient logistics, marketplace expansion, and disciplined cost management can outweigh years of heavy investment.
While Amazon continues to expand its local presence with its global ecosystem and Prime services, Takealot remains South Africa’s market leader and is now entering a new phase focused on profitable growth rather than simply expanding market share.
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