Takealot makes history

Takealot is in a stronger position to take on increased competition from international e-commerce giants like Amazon than it was last year.

The local e-commerce giant has reported its first full-year profit, driven in part by the uptake of its TakealotMORE subscription service.

This comes after Amazon made a big move in the local market with the launch of its Prime subscription service, which was launched at an extremely low price in order to attract customers and take market share.

Takealot owner Naspers released its results for the year through March 2026 on Monday, 29 June, which provided insight into the e-commerce company’s performance.

The Takealot Group, which includes Takealot.com, Mr D, TakealotMORE, and Takealot Fulfilment Solutions, reported an 18% increase in revenue to $1 billion (R16.42 billion).

The group’s gross merchandise value (GMV) shot up by 14% to reach $2 billion (R32.85 billion).

Most notably, the group reported a full-year profit for the first time in its history, with adjusted EBIT swinging from a $13 million (R213.53 million) loss in 2025 to an $11 million (R180.67 million) profit in 2026.

In addition, the group’s adjusted EBITDA surged by 86% to reach $78 million (R1.28 billion).

The company explained that its expanded gross profit margins were driven by a favourable category mix, the adoption of TakealotMORE, and a 37% increase in retail media revenue.

As usual, Takealot.com was the primary contributor to the group’s revenue, having generated $906 million (R14.88 billion). The platform also achieved 15% GMV growth.

Mr D recorded 18% revenue growth to $138 million (R2.27 billion), with GMV growth of 13%.

Notably, the company also reported that the Mr D grocery vertical achieved its first-ever profit, powered by 38% growth.

Thanks to this improved business performance, revenue growth, and gross margins, Takealot’s independent valuation improved above its carrying value.

However, this was not enough to justify reversing a previous R5.9 billion impairment loss recognised in 2024.

Amazon lays down the gauntlet

Takealot’s improved financials come at a time when e-commerce competition is heating up in South Africa.

American e-commerce giant Amazon, which launched in South Africa in 2024, recently made a big move by introducing its Prime membership service.

Around the same time Amazon first launched in South Africa, Takealot introduced its own subscription service: TakealotMORE.

Structured into two tiers, TakealotMORE gives some members unlimited free deliveries, access to exclusive deals, and some other bonus perks like a News24 subscription.

This service will cost subscribers either R39 per month or R99 per month, depending on the tier they choose.

The aim of this service is to deepen customer engagement and increase the frequency of purchases.

According to Naspers’ results, TakealotMORE is performing well, having experienced rapid adoption and an increasing subscriber base over the 2026 financial year.

The company said the service has been highly successful in capturing platform volume, now accounting for 27% of Takealot.com’s overall GMV.

Naspers also identified TakealotMORE as one of the primary drivers behind Takealot’s first-ever profit.

However, Amazon’s Prime membership now presents a notable threat to Takealot and TakealotMORE.

Debuting in South Africa at an extremely low price point of R59 a month or R399 a year, Prime gives members unlimited free same-day and next-day delivery on a wide range of items with no minimum spend.

Prime members can also enjoy unlimited streaming of exclusive Amazon Originals and international movies and series on Prime Video, along with free gaming with Amazon Luna, with a free monthly Twitch channel subscription.

Prime members also receive early access to special deals during events like Black Friday.

The American giant’s offering could put Takealot under severe pressure, as Amazon seeks to take more market share.

However, Takealot’s profitability puts it in a far better position to compete with Amazon and other e-commerce competitors in the coming years.