Naspers Sees 8% Revenue Growth from Classifieds and Food Delivery

South African technology investment giant Naspers has reported strong revenue growth for the year ending March 2024, with an 8% increase in consolidated revenue driven by the robust performance of its e-commerce businesses, Classifieds and Food Delivery.

The company’s core e-commerce portfolio, managed through its global subsidiary Prosus, achieved profitability for the first time, surpassing the initial target of reaching this milestone by the first half of 2025. 

Naspers reported a consolidated e-commerce trading profit of $24 million, a significant turnaround from the $435 million loss recorded the previous year.

Ervin Tu, the Interim Group CEO of Prosus and Naspers, attributed the company’s success to its strategic focus and the implementation of AI-powered technologies across its portfolio. 

“We have made substantial progress this year in delivering against our strategy. Our e-commerce portfolio is profitable for the first time, and our ongoing buyback has created significant shareholder value,” he said .

Driving Growth in Classifieds and Food Delivery

The revenue growth was primarily driven by the strong performance of Naspers’ Classifieds and Food Delivery segments. 

The Classifieds business, which includes the OLX platform, saw a 27% year-over-year revenue increase, while the Food Delivery segment, led by iFood, grew by 38%.

Performance in South Africa

In South Africa, Naspers’ e-commerce subsidiaries, including Takealot, Mr D, and Superbalist, reported mixed results. 

While the Takealot Group’s revenue declined by 2% year-over-year, the trading loss improved significantly, narrowing to $14 million from $22 million in the prior year. 

The group’s gross merchandise value (GMV) grew by 3%, and Takealot.com’s marketplace seller base exceeded 10,000 active sellers.

Phuthi Mahanyele-Dabengwa, the South Africa CEO of Naspers, highlighted the company’s commitment to innovation and addressing consumer needs in the country. 

“Our businesses in South Africa continue to innovate and explore new opportunities, despite the challenging economic conditions affecting consumers. This demonstrates our commitment to developing a deep understanding of consumer needs and to developing solutions that improve everyday life,” she said.

Read More: Jumia Food’s Exit: Four Months After, Former Drivers are Still Jobless Across Africa

Outlook and Priorities

The company’s strong financial performance was also driven by its ongoing share buyback program, which has created $32 billion in shareholder value and delivered a 9% increase in net asset value per share.

Overall, Naspers’ diversified e-commerce portfolio and its focus on leveraging AI-powered technologies have positioned the company for continued growth and profitability in the years ahead.

Was this information useful? Drop a nice comment below. You can also check out other useful contents by following us on X/Twitter @siliconafritech, Instagram @Siliconafricatech, or Facebook @SiliconAfrica.