Konga, a Nigerian eCommerce firm says that it rejected a $300 million valuation from a consortium of global investors last year following assurances from its promoters that it was ready to support it expand to other African countries.
Co-Chief Executive Officer, Konga Group, Prince Nnamdi Ekeh, disclosed this on Kaleidoscope, an interview programme aired on Channels TV on Sunday, August 2nd, 2020.
Prince Ekeh, who described Konga as a technology company revealed that Konga employs directly and indirectly over 150,000 Nigerians. Most of them are merchants, logistics and other service providers. “We partner to create a trusted and sustainable digitally-driven ecosystem and working hard to scale this to about 250,000 before the end of 2020.
“However, we are also keen to expand into other African markets after taking charge of the Nigerian market. The e-Commerce market in African is still a largely untapped one. Therefore, any company that makes the right in-roads will reap huge benefits from it,” he said.
“We have also received enquiries from the New York Stock Exchange, the London Stock Exchange and the Nigerian Stock Exchange to list on these markets. It’s something that will happen as part of our African expansion plan when Konga becomes a multi-billion-dollar business.”
The young business leader said Konga has invested well over $120 million since it was acquired two years ago in Nigeria alone and now strategically structured to take on other African countries.
“Though we started with a monthly loss of N400 million, but with new systems, structure and energy put in place, we have gradually been reducing losses and now about N100 million loss per month.
“E-Commerce is an expensive project but we are best positioned to deliver as a very innovative technology company,” he disclosed. “We see ourselves as more than just an e-Commerce company. Konga is a technology company and as a technology company, we are positioned to leverage that status in deploying new solutions and innovations.
“Indeed, no one should be surprised if tomorrow, Konga starts launching space ships into orbit. Although we have received several offers from interested investors, we are content with the group that is currently funding Konga.
“The group is highly ethical and want us to maintain the highest level of integrity. Our investors have assured us of enough capital to survive the next five years at least. This was why we did not accommodate a valuation of $300 million from a consortium of global investors last year.
Continuing, he stated: “Our strategies and tact are 21st century influenced, but also taking cognizance of deficiencies in our country and that was why we spent the first two years rebuilding technologies, setting up secure but robust warehousing facilities and delivery logistics nationwide. With these under our control and owned by us, we are driving towards profitability. It is important to note that at Konga, we do not believe in just hype.
‘‘In addition to our status as a technology company, Konga is also Nigeria’s first ever marketplace and composite e-commerce group. The company is on the verge of rolling out a suite of cutting-edge solutions and services that will excite the market very soon.
‘‘But that is not all. A lot is happening behind the scenes at Konga. We recently announced the re-launch of the Konga Affiliate programme. Also, we developed a solution for corporate procurement which has helped procurement managers in major establishments.
“Konga boasts the largest collection of merchants and because of this, pricing is very aggressive, thereby helping procurement managers get the best deals on Konga while also promoting transparency. We are committed to our vision and clearly understand that it is a long term and highly ethical race,” he concluded.
