February 6, 2018

Zinox acquires Konga in shock deal

Zinox acquires Konga in shock deal

Chief Leo Stan Ekeh, Chairman, Zinox

By Prince Osuagwu

The Zinox Group, yesterday, annouced that it has concluded the acquisition of e-commerce powerhouse, Konga, after a month-long negotiation with major investors, Naspers and AB Kinnevik.

Chief Leo Stan Ekeh, Chairman, Zinox

According to the terms of the acquisition, the Zinox Group will assume ownership of the e-commerce group, which includes, an online mall; KongaPay, a CBN-licensed mobile money platform with over 100,000 subscribers and rated as one of the best mobile money channels in the country, as well as KOS-Express, a digitally-driven and world class logistics company with advanced delivery capabilities for Konga and other structured companies nationwide.

The group says the acquisition would help retain several Nigerians working in the e-commerce outfit, while more will be employed.

The acquisition is also understood to have passed all regulatory approvals by the Securities and Exchange Commission, SEC.

Zinox says its first priority in the acquisition is to reposition Konga for a greater share of the e-commerce market in Nigeria and beyond.

‘Why we picked Konga’

Head of Corporate Communications, Zinox Group, Gideon Ayogu, said the decision to invest in Konga was as a result of long interest in the e-commerce business.

He said: “We have always had an interest in Konga and another big one you know very well. But our priority was Konga, because of her integrated nature of four quality companies in on.”

Already, the e-commerce company is said to worth $34 million, has 184,000 active users, hich is 80 percent mobile based.

Former owners of the business are South Africa-based Naspers, a broad-based multinational internet and media group, offering services in more than 130 countries, while AB Kinnevik, founded in 1936, is a Swedish investment company, investing primarily in digital consumer brands.

Through this acquisition, the Zinox Group, also one of Nigeria’s foremost integrated ICT solutions conglomerate and Original Equipment Manufacturer, OEM, is expected to expand its operations to e-commerce, an industry it pioneered in Nigeria with the launch of BuyRight, which was challenged by the absence of credit card and e-payment infrastructure when it was launched over 12 years ago.

Interestingly, this unprecedented development is coming at a time global e-commerce spending is expected to top previous levels.

In 2017, retail e-commerce sales worldwide was valued at $2.829 trillion, while e-retail revenues are projected to grow to $4.48 trillion in 2021.

Sources at Zinox told Vanguard the acquisition is expected to create employment for over 5,000 Nigerians, both at home and in the Diaspora, within a short period.