Tech company, Zinox, acquires eCommerce giant, Konga

Nigerian technology company, Zinox Technologies, has reportedly acquired eCommerce giant, Konga.  Financial and structural details are still sketchy as it is not known whether Leo Stan Ekeh’s Zinox bought out Kinnevik and Naspers.

Both companies invested more funds into Konga last year and even Konga’s CEO Shola Adekoya said their investments underlined their ongoing commitment to the business and the Nigerian e-commerce market.

Before last year’s undisclosed amount investment, Swedish company, Kinnevik and South African media giant, Naspers had invested as much as $78.5 million in Konga between 2012 and 2014.

The report by ThisDay newspapers claimed that the Head of Corporate Communications of Zinox Group, Mr. Gideon Ayogu confirmed the acquisition.

According to details of the deal, Zinox Group would assume ownership of the e-commerce platform, Konga.com; KOS-Express, the logistics arm of the business and KongaPay, the company’s integrated mobile money payment channel with over 100,000 subscribers.

Commenting on the transaction, Ayogu said: “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.

 “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.”

“Our ambition is to up the tempo by revolutionising 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.” 

It is however not clear yet whether Konga.com will not be merged with Yudala.com, another e-Commerce company owned by Mr Ekeh’s son. This undoubtedly will make the merged entity the biggest e-Commerce company in Nigeria.

The divestment from Naspers seems to indicate the South African media giant is divesting from Sub-Saharan Africa.