Takealot CEO Kim Reid recently revealed that Takealot makes around four times more than Jumia, which equates to nearly R9 billion per year.
Jumia is a Nigeria-based e-commerce platform which sells a large range of products like fashion and electronics across 14 African countries.
The company consists of a marketplace, which connects sellers with buyers, a logistics business for deliveries, and a payment service.
Jumia promotes itself as the “leading pan-African e-commerce platform”, and partnered with 81,000 African companies and entrepreneurs to serve millions of customers.
Takealot is four times bigger than Jumia – Kim Reid
Speaking to Bruce Whitfield on Taking Stock, Reid said Jumia used clever marketing to brand itself as the “leading pan-African e-commerce platform”.
“They have been very good in choosing their words. They call themselves the largest ecommerce company that is in multiple geographies in Africa,” said Reid.
He added that Jumia is, in fact, a lot smaller than Takealot. “They are roughly around 25% of our revenue,” said Reid.
“They are a different type of business. Good luck to them. They have a small fashion business in South Africa, called Zando,” said Reid.
“I do not know what their ambitions are. I am sure they are huge in Africa. Should they be listed – someone else can make a call on that and invest or not invest.”
How much money Takealot makes
If Jumia makes around 25% as much revenue as Takealot, it is easy to calculate how much money South Africa’s largest e-commerce player rakes in.
Jumia reported revenue of €130.6 million (around $147.5 million) in 2018, which translates into R2.197 billion.
This means Takealot’s revenue is around R8.79 billion. This means the company makes over R700 million in revenue per month.
This is a significant increase from its turnover of R2.3 billion in 2017, when it processed over 2.9 million transactions from around 1 million customers.
Some industry players, however, said the R8.79 billion figure looks too high and estimated that Takealot’s revenue may be closer to R5 billion.
According to these industry players, Superbalist and Spree added in the region of R1 billion to Takealot’s revenue, but that it is still not enough to bump revenue to nearly R9 billion.
Takealot was asked for accurate revenue figures, but it did not immediately provide comment on the issue.