One of Nigeria’s leading integrated Information Communication Technology (ICT) solutions conglomerate and Original Equipment Manufacturer (OEM), Zinox Group has acquired one of Nigeria’s e-commerce giant, Konga for an unreported amount.
A source close to the deal claims the company was sold for a price of $10 million to $15 million.
A spokesperson for Zinox, also confirmed the acquisition has been approved by the Securities and Exchange Commission (SEC).
Through this acquisition, Zinox now owns 99 percent of Konga, including all of Konga’s e-commerce domain, Konga.com, logistics unit KOS Express and digital payment solution KongaPay.
The acquisition comes as a shocking surprise to technology observers as Konga is believed to be worth much more. Q1 2017, Naspers also invested $13.5 million in the company.
“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,” the Head of Corporate Communications, Zinox Group, Mr. Gideon Ayogu told Thisday Newspaper.
This acquisition comes two months after Konga sacked about 60 percent of its staff. Konga also stopped the pay on delivery service and warehousing for its merchant. However it is reported that the acquisition will also see the company recall some fired staff in a bind to revisit some products and build more capacity as it starts a new journey.
It is worthy to note that Zinox Group is not new in the ecommerce industry as it had run it’s own platform BuyRightAfrica.com. BuyRightAfrica.com was challenged by the issue of absence of credit card and e-payment infrastructure. There is also a possibility that Konga will be merged with Yudala an eCommerce company under the Zinox Group.
Following this announcement, Yudala’s Chairman Leo Stan Eke has been appointed the new CEO of Konga. This puts an end to the tenure of Sim as the Chairman of the company he founded 12 years ago.
However as at this morning, Konga customers can no longer buy on Konga, instead, they can only contact the seller of the merchandize in order to finalize their order.