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Takealot Group revenue grows 15% to $872 mln

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Invests in logistics, offerings and subscription service

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Focus on loyalty program, AI, product range to keep market

share

(Recasts throughout with South African e-commerce business)

By Nqobile Dludla

JOHANNESBURG, June 23 (Reuters) - South Africa's biggest

online retail group Takealot grew its full-year revenue by 15%,

with growth supported by investments in logistics, enhanced

customer offerings and its subscription service as it faces

competition from new market entrant Amazon ( AMZN ).

Technology investor Naspers said on Monday that

Takealot Group's revenue rose by 15% in local currency to $872

million for the fiscal year ending March 31. Despite this

growth, the group posted an adjusted EBIT (earnings before

interest and taxes) loss of $13 million.

Takealot.com, the group's general merchandise e-commerce

platform and Amazon's ( AMZN ) direct competitor, saw its gross

merchandise value (GMV) increase by 13%, with revenue climbing

17% and order volumes up by 15%.

Takealot also owns on-demand platform Mr D, which offers

restaurants, groceries and other shops.

"I think their (Takealot) performance in the last year was

ahead of our expectations, actually," Prosus and Naspers Group

Chief Financial Officer, Nico Marais told Reuters.

"We did invest in our marketplace elements to improve the

business, and we actually saw Amazon ( AMZN ) moving, probably not at the

speed that we originally expected, which was to our benefit. So

we are ready to fight off competition."

The battle for online consumer spending intensified

throughout 2024, with both global and local players investing

heavily to capture market share. Amazon ( AMZN ) has since expanded its

South African service to include non-perishable groceries.

The U.S. online retail giant

launched in South Africa

in May 2024.

To defend its leading market share, Takealot said it will

strengthen its market presence by enhancing its loyalty

programme, TakealotMore, which it hopes will attract and keep

existing customers.

"The business will also focus on growth through range

extension and key categories while improving unit economics

through cost optimisation, particularly delivery costs and stock

efficiencies," it added.

The retailer is also investing in artificial intelligence to

gain better understanding of its customers, identify trends,

personalise marketing campaigns and automate customer

experiences.