Makro and Game owner Massmart, has acquired a controlling stake in online shopping and delivery platform, OneCart.
On Wednesday, Massmart announced that it reached an agreement to acquire 87.5% of OneCart after informing the market that both parties had been negotiating the transaction in August.
The online shopping and delivery service’s partners include Woolworths, Pick n Pay Dis-Chem and Clicks.
The acquisition forms part of Massmart’s e-commerce growth strategy.
"We are excited by the opportunities that this acquisition presents. eCommerce continues to grow rapidly, both in South Africa and for Massmart, contributing up to 3-4% participation in overall retail sales. We don’t expect this growth trend to change and have embarked on implementing the fundamental building blocks required for a strong ecommerce offering," said Massmart’s vice-president for group eCommerce, Sylvester John.
He added that Massmart would continue to support OneCart’s independent retailer marketplace model, while growing the platform and enhancing customer experience.
The retail chain owner will provide equity funding to OneCart through an unsecured convertible loan and acquire shares from current OneCart shareholders. Onecart’s founder Lynton Peters and a minority shareholder will own the balance of the shares.
The transaction will be finalised once it has approval from authorities and has met the required conditions.