Konga Nigeria has been acquired by Zinox Group for $10m

VentureHunt reports that Zinox Group has acquired Nigerian e-commerce giant and online mall, Konga, along with its subsidiaries Kongapay and KOS Express.

konga kongapay kosexpress

The news report says that the acquisition cost Zinox $10 to $15m and that both Yudala and Konga will be integrated “with potential to expand across Africa”. No details of what that integration means have been provided, but things shall unfold in the weeks and months ahead. The son of Zinox Chairman is said to be the owner of Yudala.

Fresh Life From Zinox Group

Like most other e-commerce operations in Nigeria, Konga has had to deal with the rough conditions of the country. The struggle to keep operational expenses low without sacrificing operational efficiency and service delivery is a very real one.

Just last December, Konga Nigeria executed a number of reforms, including laying off some staff and dropping the payment-on-delivery service that its customers had been enjoying.

The acquisition by Zinox Group is a fresh breath of life to Konga and its operations. Whether it will continue to operate under its present brand name or it will be absorbed under another brand identity (Yudala or some other) remains to be seen.

News Source. Thanks to EyeBeeKay for the tip-off.

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4 thoughts on “Konga Nigeria has been acquired by Zinox Group for $10m

  • February 3, 2018 at 12:20 pm
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    I am not particularly surprised.

    Earlier, I said in an article, after Konga stopped payment on delivery…

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    Why exactly would I order something online, and pay BEFORE getting to see it FIRST ? Apart from the convenience of delivering it to me, what exactly is the advantage, given that these online malls themselves buy / get stocked from /:by local merchants?
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    • February 3, 2018 at 2:14 pm
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      The problem wasn’t because Konga stopped POD. The problem was way before that. POD was part of the problem that weakened Konga. With Zinox’s financial muscles, Konga stands a better chance now.

      Here are the core issues behind the struggles of e-commerce companies like Konga, Jumia and the like:

      1. A rather small viable market. Contrary to the hype by many of our tech gurus, Nigeria still has a very small viable e-commerce market.

      2. Unwillingness of many shoppers to pay online upfront (of course, stemming from trust issues).

      3. Horrible logistics and higher operational costs due to inadequate infrastructure in the country.

      There are others, but these three take the cake.

  • February 5, 2018 at 6:20 pm
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    Delayed delivery is discouraging. It took Jumia 12 days to deliver a phone to Osun state

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