According to new reports, South African ecommerce giant Takealot is raising an additional R1-billion in funding. The purpose of this round is unclear.
In 2010, Tiger Global Management purchased Take2 and relaunched it as Takealot. Since the re-launch, the company concluded a 100% buy-out of another South African ecommerce website, Superbalist, as well as a 46.5% stake in the Mister Delivery Express courier company.
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As noted official post on the Takealot website from 2014, the company’s 2014 US$100-million investment will be used “for continued expansion in South Africa and sub-Saharan Africa.” To date, the company has yet to expand outside of South Africa.
With their acquisitions, which have strengthened Takealot’s South African footing, may have hampered their international expansion.
Read more: Takealot’s Kim Reid talks new millions, expansion and the future of ecommerce
Industry sources told MyBroadband that the South African ecommerce giant is looking to raise a new round “in excess of R1-billion”. What this injection would be used for however remains unclear.
Some have speculated Takealot may be looking to start a local online marketplace, which Kalahari.com had previously tried to do. Takealot has been dabbling with the idea, which can be seen on select products, though this is currently only open to suppliers and distributors.
Takealot recently took top spots as South Africa’s top website and best mobile site at the South African eCommerce Awards.
Ventureburn has reached out to Takealot and will update as the story develops.
