Two South Africa-based e-commerce sites, Kalahari.com, which is backed by internet company Naspers’ corporate venturing subsidiary MIH, and Takealot have merged their operations.
Kalahari is a one-stop e-commerce site offers everything from books and video games to luggage and outdoor. It is one of several e-commerce companies operated by South Africa-based Naspers.
Takealot, which provides a similar service, received $100m from investment firm Tiger Global Management in May this year.
The move has been made by the two companies in order to offer a broader range of delivery services and products to consumers. The two have stated that alone, they cannot compete against the much larger foreign companies providing similar services such as Amazon.
Oliver Rippel, the Naspers senior executive responsible for Kalahari, said: “We realise we have to work together if we are to survive and prosper.
“If you also take into account an uneven playing field against foreign operators who do not pay tax in South Africa, and the fact that high broadband costs are impeding the speed of growth in local online shoppers, combining forces gives us a better chance of success.”
The merger is subject to approval by South Africa’s competition commission. The businesses will continue to trade separately for the rest of this year.