Takealot has been spending billions over the last 9 years to become the dominant ecommerce player in South Africa, and it is now on track to become profitable within 2 years.
This is according to Takealot CEO Kim Reid, who spoke to Bruce Whitfield on Taking Stock about the company and its future plans.
While Takealot generates billions in sales each year, it is investing this money back into the business to further improve operations and grow its market share.
Reid explained that ecommerce is incredibly capital intensive because of the physical assets which are required to run the business, which include warehousing and logistics.
A good example is Takealot’s recent investment in 25 new pickup points across South Africa, headed up by a flagship venue at the Big Bird One Stop in Midrand, Gauteng.
These new pickup points offer an alternative to receiving one’s orders via delivery and give the company a big advantage over its competitors.
Profitability around the corner
Reid said they started Takealot nine years ago to build a sustainable and successful ecommerce business.
Over the years, Takealot has raised and spent billions to become the top online shopping platform in South Africa.
Takealot is now the dominant ecommerce player in South Africa, with strong revenue growth and a growing client base.
While the company continues to rely on funding to operate, Reid said they are not concerned that they are not profitable yet.
“We are not scared of that, because we have an ongoing plan and we are hitting our numbers as we go year from year, so we are on a good path to profitability,” Reid said.
He said Takealot will become profitable in 2 years’ time and predicts Superbalist will become profitable at around the same time.