Takealot, a relatively new South African e-commerce website, recently raised $100 million in funding from Tiger Global Management. The website, which serves as an Amazon-like online retail center for South Africa, is looking to use the new funding to expand into the rest of the country as well as sub-Saharan Africa. This is a tremendous boon for the growing South African e-commerce market.
What is Takealot?
Takealot is an online retail center in South Africa that features goods such as outdoor equipment, home furnishings, electronics, and more. Launched in 2011, the company has been expanding rapidly through South Africa, creating warehouses in Cape Town and Johannesburg. The South African e-commerce company also purchased a controlling interest in Mr. Delivery, a fulfillment logistics company. As the takealot website states:
Takealot.com was officially launched in June 2011 post the successful acquisition of an existing ecommerce business called Take2 by the US based Hedge Fund, Tiger Global Management and Kim Reid in October 2010. The business was initiated with a simple vision in mind: To be the largest, simplest, most customer centric online shopping destination in Africa.
What Does This Mean for South African E-Commerce?
Although Takealot does not rival Amazon, eBay, or Alibaba, the company is growing at an astounding rate. South Africa is already one of the largest economic hubs on the continent, and Takealot will likely rise to the top of the e-commerce market there. As we’ve seen in the US and in China, one major e-commerce success can launch many others, and Takealot’s success will likely determine the success of other e-commerce industries in South Africa.
What Does it Take for an E-Commerce Giant to Get Started?
Any online retailer can achieve massive funding and great success like Takealot. All it takes is a good idea and the right merchant services. Many new merchants think first of things like marketing, production, and distribution–however, your payment processing services can also determine your success or failure. Look for providers that offer a multitude of merchant accounts with live client support that will help you grow your business.