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    HomeUpdatesSixty60: The $1.7M Seed Investment That Built a $1B Delivery Empire for Shoprite

    Sixty60: The $1.7M Seed Investment That Built a $1B Delivery Empire for Shoprite

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    Shoprite Group, Africa’s largest food retailer, has revealed that its on-demand delivery service, Sixty60, has fulfilled over 100 million orders since its launch in late 2019. The platform, now a central pillar of the company’s strategy, generated revenues of R18.9bn (approximately $1.05bn) in the 2025 financial year, a staggering 48% increase from the previous year.

    This milestone is not just a story of a legacy retailer adapting to the digital age; it’s a case study in strategic partnership. Behind the ubiquitous blue and green branding of Sixty60 is Zulzi, a local tech startup that received a crucial, and at the time, daring, seed investment from the grocery giant it now serves. The journey from a bootstrapped e-commerce venture to the engine of a market-leading platform illustrates a powerful model for corporate-startup collaboration.

    The Omnichannel Flywheel

    According to Shoprite’s latest annual report, the group’s digital transformation is a key market differentiator. “Our substantial investment in data, AI and cloud has allowed us to deliver precision retailing and provide personalised customer experiences,” the report states.

    The numbers bear this out. In 2025, Sixty60 saw a 27% year-on-year growth in active digital customers. The app, which has been downloaded over seven million times, added 1.8M new downloads in the past financial year alone, supported by an expansion to 694 store locations.

    Shoprite’s core strategy is to build an “omnichannel” ecosystem where digital and physical retail seamlessly blend. The data suggests this is working: customers who shop both online and in-store spend 3.8 times more than those who only shop at brick-and-mortar locations. The platform’s “stickiness” is evident, with average basket sizes growing by nearly 5% in 2025, indicating that users are progressively shifting more of their household spend online.

    The Data Engine: Xtra Savings and ShopriteX

    The engine driving this personalisation and growth is the Xtra Savings loyalty programme. With 33 million members, the programme is deeply embedded in the company’s operations, contributing to 88% of total merchandise revenue. Its members saved a combined R16.5bn in the last financial year.

    However, its true value lies in the data. With over 2,700 card swipes per minute, the loyalty programme provides a rich stream of customer data. This information is processed by ShopriteX, the group’s digital innovation unit, to optimise everything from supplier stock levels to in-store promotions.

    This data has also created a lucrative alternative revenue stream. ShopriteX sells data-driven insights to suppliers, generating what it calls “marketing and media revenue.” This division grew by 37% year-on-year to R647m, demonstrating how the retailer is monetising its digital assets beyond direct sales.

    The Startup Behind the Curtain

    The technological foundation of Sixty60 was not built in-house but by Zulzi, a startup founded by Donald Valoyi. Zulzi began as a platform for selling books and electronics before pivoting to on-demand multi-category delivery in 2016.

    “We were the first to introduce on-demand deliveries here in South Africa,” Valoyi explains. “As we grew, retailers started to take notice. Instead of us knocking on their doors, they were knocking on ours. Shoprite moved faster than everyone else.”

    Shoprite commissioned Zulzi to build its on-demand platform. The early days were lean. “I remember when the Shoprite executives first came to visit us,” Valoyi recalls. “Our office in Braamfontein didn’t have tiles… I had to ask a few friends to come by to give the impression that we had a larger team.”

    Despite the modest setting, Zulzi delivered the Sixty60 platform in just six months. Impressed by their agility and potential, Shoprite invested R30m (around $1.7M at the time) for a 26% stake in the startup. Valoyi admits he was hesitant.

    “As a founder, you always want to protect your business. I was worried about having a large retailer as both a customer and an investor,” he says. “The lesson here is to build your business and protect it. Don’t rush to take money from anyone just because they offer it.”

    Today, Zulzi employs over 100 tech staff and works with more than 500 drivers, processing nearly R1.5bn in grocery orders monthly through its technology.

    Dominating the Competitive Landscape

    Sixty60’s success has reshaped South Africa’s on-demand delivery market, placing immense pressure on competitors. Rivals like Mr D (partnered with retailer Pick n Pay), Woolies Dash (from Woolworths), and Uber Eats are fighting for a share of the market. Uber Eats recently expanded its partnership with SPAR, but it faces an uphill battle against Sixty60’s estimated 80% market share in on-demand grocery delivery.

    Shoprite has continued to innovate, re-platforming the Sixty60 app to integrate general merchandise from its larger Checkers Hyper stores. The revamped app, which won the 2024 FNB App of the Year Award, now allows customers to order over 10,000 larger items for same-day delivery in a 60-minute window. It also introduced a subscription service, Xtra Savings Plus, for unlimited free deliveries at R99 per month.

    What’s Next?

    Shoprite shows no signs of slowing its digital investment. The group has earmarked a capital expenditure of R7.9bn for the 2026 financial year. According to CFO Anton de Bruyn, this capital will be directed towards store optimisation, strengthening the supply chain, and “accelerating investment in digital and data-led activities.”

    The story of Sixty60 is a blueprint for how incumbents can win in the digital age: not by merely building an app, but by creating an integrated data-driven ecosystem and making a strategic, symbiotic bet on a nimble tech partner. For a seed investment of just $1.7M, Shoprite not only acquired a crucial technology partner but also catalysed the creation of a billion-dollar revenue stream that now defines its modern retail strategy.

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