Takealot sells Superbalist to private equity consortium

Naspers’ e-commerce business in SA, Takealot, has sold Superbalist to a consortium of retail and private equity investors led by Blank Canvas Capital.

On Monday, Takealot said it had sold the online fashion retailer over the weekend.

“This strategic acquisition will support Superbalist’s ongoing growth, allowing the Takealot Group to dedicate its efforts to further expanding Takealot and Mr D,” the company said. 

“We extend our best wishes to the Superbalist team as they embark on this new chapter in their journey. Throughout the transition period, Superbalist services will continue to operate without interruption, ensuring customers experience no disruptions.”

In March, Takealot indicated it was looking to sell the unit as it faced mounting competition from online China-based retailers Shein and Temu, which have disrupted the local online fashion market in the past two years.

The company said it would continue to provide warehousing and logistics services to Superbalist through a multiyear service agreement.

“The Takealot Group remains committed to providing exceptional value and service to our customers. Backed by our parent company, Naspers, we are well positioned to strengthen our market-leading positions in the e-commerce sector, ensuring continued growth and success for both Takealot and Mr D.”

Founded in 2011, Takealot — made up of takealot.com, Superbalist and food delivery business Mr D Food — is the largest e-commerce business in SA. It accounted for about 2% of the overall retail market, which is dominated by brick-and-mortar outlets such as Shoprite and Mr Price.

In June, the unit reported another full year of losses for its business, dragged down mainly by Superbalist. Takealot.com and Mr D reported a profit in the year to end-March.

Its gross merchandise value and revenue grew 13% organically to $1.523bn (R27bn), while it was up 8% in local currency, excluding any merger and acquisition activity. The group narrowed its trading losses by 36% to $14m.

Growth continued despite challenges including a tough consumer environment driven by the rise of interest rates and high inflation.

The launch of Amazon.co.za — the online giant’s SA store — had been widely seen as a direct challenge to reigning champion Takealot, which has the backing and deep pockets of its parent. Naspers is a top-10 global tech investor alongside Facebook, Google and Amazon.

While much of the attention surrounding Amazon in SA has focused on its competition with Takealot, Shein and Temu had already cemented their place in the market.

To level the playing field with local retailers, SA authorities said recently they would add a 45% duty plus VAT to small batches of retail goods imported from China. This will substantially raise the costs of buying from Shein and Temu.

gavazam@businesslive.co.za