Zinox Group plots To Overtake Jumia With Acquisition Of Konga
Zinox Group, integrated ICT solutions and Original Equipment Manufacturer, has acquired Konga in an attempt to take leadership of the e-Commerce market in Africa from Jumia.
In Nigeria, Jumia makes thousands of daily deliveries. In 2015, the first nine months generated €206 million. A year on year increase of 265%. It is one of the largest e-commerce enterprises operating in Africa, all of which are seeking to tap into the continent’s growing consumer market.
The landmark acquisition is expected to raise the profile of e-commerce in the country and that of Zinox Group.
Recall, Zinox Group was the first to launch e-commerce in Nigeria with the launch of BuyRightAfrica.com which struggled to cope with the absence of credit card and e-payment infrastructure over 12 years ago. However, in 20I5, it launched Yudala to compete with Konga, Jumia and others. Yudala is still present but has not been able to compete favourably with Jumia but industry watchers are of the view that the acquisition will pave way for possible Yudala and Konga merger.
Zinox Group acquired 99 percent shares of Konga, leaving one percent for a minority shareholder, after months of strategic negotiations with foreign investors Naspers and AB Kinnevik.
The acquisition is also 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.
Gideon Ayogu, Head of Corporate Communications at Zinox Group, who confirmed the development, 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 forefront 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.