Finally, several months of strategic
negotiations with foreign investors, Naspers and AB Kinnevik, have paid off with the Zinox Group,
Nigeria’s foremost integrated ICT solutions conglomerate and Original Equipment
Manufacturer (OEM), acquiring the majority shareholder in e-commerce giant, Konga
- an unprecedented move that is widely expected to raise the profile of
e-commerce in the country, reports ITRealms.
Naspers is a South Africa-based
multinational internet and media group, offering services in more than 130
countries while AB Kinnevik, founded in 1936, is a Swedish investment company
investing primarily in digital consumer brands.
The development signifies a
remarkable return to e-commerce for the Zinox Group after it pioneered
e-commerce in Nigeria with the launch of BuyRight Africa.com which struggled to
cope with the absence of credit card and e-payment infrastructure over 12 years
ago.
The acquisition is also
understood to have passed all regulatory approvals by the Securities and
Exchange Commission (SEC).
Details of the mega deal indicate
that the Zinox Group, arguably Africa’s most integrated technology group will
assume ownership of the e-commerce group which includes Konga.com, Nigeria’s largest online mall; KongaPay, a CBN-licensed mobile money platform with over 100,000
subscribers and rated as one of the best mobile money channels in the country
as well as KOS-Express, a
digitally-driven and world class logistics company with advanced delivery
capabilities for Konga and other structured companies nationwide.
The landmark acquisition is seen
by industry watchers as a major development that could see e-commerce in
Nigeria finally unlock the massive revenue potential in the global
multi-billion-dollar industry.
In 2017, retail e-commerce sales
worldwide amounted to 2.829 trillion US dollars while e-retail revenues are
projected to grow to 4.48 trillion US dollars in 2021.
Coming at a time when global
e-commerce spending is expected to top previously unheralded levels, the
acquisition is widely expected to reposition Konga for a greater share of the
e-commerce purse in Nigeria and beyond.
The acquisition is also expected
to create employment opportunities for over 5000 Nigerians, both at home and in
the Diaspora.
Confirming this development, Head
of Corporate Communications at Zinox Group, Gideon Ayogu, disclosed that the
organization is keen to take e-commerce in Nigeria to hitherto-unprecedented
heights.
“We have always had an interest
in Konga and another big one you know very well but our priority was Konga
first because of her integrated nature of four quality companies in one,” he
disclosed. “Konga is a world-class,
professionally-run company whose landmark strides in the sector has gone a long
way in ushering millions of Nigerians into the ease and convenience of online
shopping and boosting the conduct of e-commerce in the country. Konga’s
integrity is their pride.
“Today, many Nigerians can
attribute their first experience of e-commerce to Konga.com and we are excited to be a part of this remarkable story.
Many shoppers can also attest to the speed and efficiency in delivery that
characterizes Kos-Express, the
company’s logistics arm, which is arguably the best in the sector at the
moment.
“Our ambition is to up the tempo
by revolutionizing e-commerce on the African continent, with Konga at the
fore-front of this initiative. In addition to positioning the business on a
path of profitability in the short term, our long term plans are focused around
seeing Konga well established in other African capitals. Furthermore, we will
be unveiling a lot of new initiatives soon and we advise shoppers and merchants
alike to look out for these innovations which will radically reshape the
average customer experience of e-commerce in Nigeria and on the continent and
put more money in their pockets,” he noted.
ITRealms recalls that the Zinox Group led
by serial digital entrepreneur, Ekeh, has grown from a position of strength to
become one of the biggest names on the African technology scene. With its
headquarters in Lagos, Nigeria and branches all over the country in addition to
hubs in Africa, Asia, Europe and the Middle East; the Zinox Group boasts a
360-degree spectrum orientation as an integrated ICT solutions group with
advanced competencies in manufacturing, distribution, retail and after-sales
support, among others.
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