By Jamie McKane for MyBroadband
Naspers has released its financial results for the year ended 31 March 2020, showing impressive revenue growth for Takealot and Mr D Food.
“Takealot, South Africa’s number 1 etailer, extended its leadership and grew Gross Merchandise Volume (GMV) 46% year on year in local currency,” Naspers said.
“Takealot’s trading loss reduced by 20% in local currency and would have improved more, but for investment in the promising food delivery business.”
Naspers said this growth was driven partly by improving gross margins and disciplined management of operating costs.
Takealot recorded revenue growth of 28% in local currency, one of the main drivers of which was the marketplace business, which grew GMV by 77% year-over-year.
“Mr D Food, South Africa’s leading food-delivery service, continues to scale as it expands the local market for food delivery,” Naspers said.
Naspers also noted that Takealot was allowed to sell and deliver only essential items in the first phase of the COVID-19 lockdown, and Mr D Food was unable to operate while takeaway restaurants were closed.
Surge in demand
The reopening of e-commerce under the national lockdown has resulted in a surge in demand for online shopping.
This, in turn, has led to Takealot and other online retailers being flooded with orders which has resulted in significant shipping delays for many products.
A source close to Takealot told MyBroadband the company is now generating close to R1 billion in sales per month – around double their usual volumes.
Takealot did not confirm these numbers when it was asked for comment, but other e-commerce players also told MyBroadband their sales have more than doubled in recent weeks.
Many other online shops have increased their expected delivery times by over a week to address logistics bottlenecks.