The Zinox Group has acquired e-commerce giant Konga in a transaction approved by the Securities and Exchange Commission (SEC). The acquisition will be a return for Zinox to an industry it pioneered but was plagued by the absence of e-payment channels.
The Head of Corporate Communications, Zinox Group, Mr. Gideon Ayogu confirmed the deal which will see the Zinox Group take control 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.
Also some industry analysts expect that the Zinox Group’s ecommerce platform Yudala will merge with Konga to make it one of biggest e-Commerce companies in Africa. The acquisition is expected to create employment opportunities for over 750 Nigerians, as many of the laid off staff may be recalled.
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.”
He added: “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 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.”
Konga recently announced a shift to a prepay-only model, essentially putting a stop to Pay on Delivery (PoD) – a significant decision which formed part of an internal restructuring aimed at putting the business on a sound footing in the market.
Led by serial digital entrepreneur, Ekeh, the Zinox Group 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.