Naspers has shut down some of its ecommerce sites under the MIH division, as part of a major restructuring exercise.
According to Ventureburn, Naspers Investor Relations Officer confirmed the restructuring, saying that the company would be shifting operations to “focus specifically on the general e-tail businesses such as Kalahari”.
She also confirmed that the group is considering “closing some non-core brands (such as Style36 and 5Rooms)” and is “consulting with staff”.
Most of the sites affected are part of the company’s African Internet Accelerator (AIA) programme. AIA was founded in mid 2013 with a majority investment from MIH.
Some of the sites affected include online fashion outlet Style 36, digital camera store SAcamera, 5rooms and baby product outfit Kinderelo. Some of the sites are already down – they carry a maintenance message and there are speculations that Naspers may have already pulled the plug on these ventures.
In the email to Ventureburn, Naspers Investor Relations Officer, Meloy Horn said “The site shutdowns are part of a much larger restructuring, which will see large parts of the division shut down, along with large-scale job losses. Those who aren’t retrenched will reportedly be absorbed into larger Naspers properties.”
Horn added that the process should not affect other Naspers subsidiaries with ecommerce investments in Africa, including Media24, which is focusing on fashion ecommerce. Its most notable effort on this front is Spree, which the group says is performing well.
She also said that remains “very excited about the future growth prospects for e-commerce” but could not provide further comment on the nature of the restructuring because the staff consultation process is ongoing.
