Loot.co.za CEO Gary Hadfield says that even though the $100 million cash injection into Takealot.com’s business has made it tougher to compete, it’s a great thing for SA e-commerce.
Speaking at the uAfrica.com eCommerce conference in Midrand, Hadfield said that the pressure was on for competitors in the local e-commerce space, but the investment was “the best thing since sliced bread” for the greater industry.
In May Takealot.com raised $100 million (just over R1 billion) from its major shareholder, New York-based Tiger Global Management.
Takealot CEO, Kim Reid has previously stated the group’s intent to become the biggest online retailer in South Africa by next year – a position currently held by Kalahari.com.
Hadfield was previously the CEO of Kalahari.com before moving on to start Loot.co.za.
Hadfield noted that, in his 13 years of experience in the industry, he came to realise that even the big players in the market don’t get everything right – leaving room for smaller business to take advantage.
Specifically, the CEO said, bigger companies had larger logistics issues to deal with.
“It’s not always easy to compete against the big guys, but by focusing on key competencies, you can boost business in specific places,” he said.