Last throw of the dice for struggling Mxit

2015-11-04 06:00

LOCAL social network Mxit said on Friday that it is shutting down its commercial operations and donating all its intellectual property and technology assets to independent public benefit organisation, The Reach Trust.

Mxit reported in 2013 that its monthly active user base was 7,5 million that year, but this figure has dropped to just 1,2 million monthly active users in July 2015, according to a Mxit statement on Friday.

Mxit, in its statement, said its application will still be available to the public as a download. But as part of the deal, Mxit chief executive Francois Swart will leave after three years in charge.

Almost 30 Mxit staff will also be transferred to The Reach Trust under CEO Andrew Rudge and ex-FNB CEO Michael Jordaan, who has been the chairperson of Mxit, but will not be actively involved with the operations of The Reach Trust.

As part of the change Mxit will also exit its India and
Nigeria businesses. The Reach Trust has been providing free services such as text-based counselling and education initiatives to up to 10 million people since 2012.

“While Mxit overall has seen a decline in activity and engagement over the past 18 months, the use of services offered by The Reach Trust on Mxit has been stable and in many cases show an upward trend,” Swart said in the statement.

Mxit’s fall as a commercial service has come amid intense competition from international offerings such as WhatsApp and Facebook.

WhatsApp has over 10 million users in SA while Facebook has 13 million.

- Fin24.

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