South Africa’s leading e-commerce platform, Takealot, has reported a 15% increase in full-year revenue, reaching $872 million for the fiscal year ending March 2025. This growth comes amid intensifying competition from global retail giant Amazon, which officially launched its South African operations in May 2024. Takealot’s performance underscores its strategic efforts to maintain dominance in a rapidly evolving digital retail landscape.
Takealot’s revenue growth was driven by a combination of logistics investments, enhanced customer offerings, and the success of its subscription service, TakealotMore. The company’s flagship platform, Takealot.com, saw a 17% rise in revenue and a 13% increase in gross merchandise value (GMV), with order volumes climbing 15% year-on-year.
Despite these gains, the group posted an adjusted EBIT loss of $13 million, attributed to increased marketing and infrastructure spending aimed at preparing for Amazon’s entry into the market. However, executives remain optimistic. “We actually saw Amazon moving, probably not at the speed that we originally expected, which was to our benefit,” said Nico Marais, CFO of Prosus and Naspers, Takealot’s parent companies.
The TakealotMore subscription programme has emerged as a key differentiator, boosting customer loyalty and shopping frequency. The company is also investing in artificial intelligence to better understand consumer behavior, personalize marketing, and automate customer service experiences.
Takealot’s on-demand delivery platform, Mr D, contributed to the group’s performance with an 11% revenue increase to $117 million. Notably, grocery delivery through Mr D saw an 81% surge in GMV, reflecting growing demand for convenience-based services.
To sharpen its focus, Takealot has divested from fashion platform Superbalist and acquired M24 Logistics, enhancing its operational capabilities. These moves are part of a broader strategy to optimize costs, expand product categories, and improve delivery efficiency.
While the company remains in the red, it is on track to return to profitability in the 2026 financial year. The leadership team is confident that continued investment in technology, customer experience, and logistics will solidify Takealot’s position as South Africa’s e-commerce leader.
Takealot’s resilience in the face of Amazon’s entry highlights the strength of local innovation and market understanding. As global players eye Africa’s growing digital consumer base, Takealot’s strategy offers a blueprint for how homegrown platforms can compete through agility, customer focus, and technological investment.
For South African consumers, the competition is a win-win – driving better services, broader product ranges, and more competitive pricing in the online retail space.
