Takealot, a South African e-commerce startup has received a huge boost in finances as Naspers, a large entertainment company made an investment of R960 million ($69.4 million) to the startup.
Takealot whose base is in Cape Town is definitely utilizing the goodwill that comes with its name I have to say -don’t call me superstitious- because this investment comes after a 2-year investment from Tiger Global and Kalahari that was worth $100 million. This –investment- served as a focal point in the turning around of Takealot’s fortunes.
It is well noted that after the investment, the startup enlarged its territories by building more warehouses in Cape Town and Johannesburg. Takealot also increased its departments to over 19 departments spanning through Lifestyle, Electronics, Fashion and Media & Gaming.
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“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,” said Kim Reid, Takealot Founder/CEO about the positive impact of the investment.
Takealot has been on the upward spiral on the growth curve with successes in other businesses such as Mr D Food, one of the largest restaurant food delivery service in South Africa; Mr D Courier, a courier service; superbalist.com, the fashion retailer.
The upward growth movement experienced by the company will definitely receive fresh impact as new funds have been pumped in.
Still talking about the investment, the CEO also added, “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.”
Also, Naspers has something to gain from this investment; it’ll become a major shareholder in Takealot. The reception of the funds by Takealot as in its finalization phase as the startup has issued a large merger notification to the South African Competition Commission. The filing of this merger notification will see Naspers become the majority shareholder in the startup.