E-commerce: Why Zinox Aquired Konga
The Zinox Group has reportedly concluded the acquisition of e-commerce powerhouse, Konga after successfully rounding off months of long-drawn negotiations with major investors, Naspers and AB Kinnevik in a landmark development that will expectedly provide employment opportunities for thousands of Nigerians and reposition Konga for a greater share of the e-commerce market in Nigeria and beyond.
Based in South Africa, Naspers is a broad-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.
Through this acquisition, the Zinox Group, Nigeria’s foremost integrated ICT solutions conglomerate and Original Equipment Manufacturer (OEM), will expand its operations to e-commerce, an industry it pioneered in Nigeria with the launch of BuyRight Africa.com which was challenged by the absence of credit card and e-payment infrastructure when it was launched over 12 years ago.
The acquisition is also understood to have passed all regulatory approvals by the Securities and Exchange Commission (SEC).
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.
Widely expected to place Konga on a sound footing for increased market share, the landmark acquisition by the Zinox Group is seen by industry watchers as one that could see e-commerce in Nigeria finally unlock the massive revenue potential in the global multi-billion-dollar industry.
Interestingly, this unprecedented development is coming at a time when global e-commerce spending is expected to top previously unheralded levels. 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.
The acquisition is expected to create employment opportunities for over 5000 Nigerians, both at home and in the Diaspora within a short period.
According to Head of Corporate Communications, Zinox Group, Gideon Ayogu, the decision to invest in Konga was an easy one for the organization.
“We have always had an interest in Konga 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 while 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 disclosed.
Led by serial digital entrepreneur, Leo Stan Ekeh, the Zinox Group has grown from a position of strength to become one of the biggest names on the African technology scene.Recall that the Group recently acquired Yes, another online and offline firm.