Nigeria’s largest online mall, Konga, and Africa’s first composite e-commerce company, Yudala, have finally announced the official merger of the operations of both companies. This merger, effective from 1st of May, is a landmark in the history of e-commerce business in Nigeria and across Africa.
This comes two months after Zinox, which owns Yudala, acquired Konga for about $10 million, which according to a source, was “much more”. This merger will see both companies leverage on the strength that they have built over the years as well as broadening the scope of their business both in the retail and e-commerce space.
“Combining forces to power the new Konga will enable us effectively achieve our goals of platform expansion and accelerated growth, as we embark on an ambitious journey to redefine the retail ecosystem with the industry’s most advanced technology,” Olusiji Ijogun, Chairman of Konga, disclosed to Thisday.
According to Ijogun, with effect from May 1st, Yudala will operate under the brand name KONGA. It will have dual CEOs, Nick Imudia will be in charge of online businesses among others while Prince Nnamdi Ekeh will be responsible for offline businesses. Retaining the Konga name is a huge advantage to Zinox because it is a more recognized brand and it has deepened its footprint in the market.
“The efficiency of Konga’s cutting-edge online platform, access to thousands of merchants and Yudala’s expansive network of fully stocked offline stores is poised to give our customers the best shopping experience imaginable,” Ijogun said. “We will be working closely with all our combined clients, customers, merchants and employees to make the integration process as seamless as possible and thereafter make public our roadmap to sustain our leadership on the continent.”
Industry watchers expect the merger to further strengthen Nigeria’s already shaken e-Commerce sector to an estimated worth of $13 billion.
So it’s bye-bye to the Yudala brand name as the new Konga business will now operate fully as both an Online e-commerce/marketplace and a retail offline business. Both aspects of the business will now ride on the Kongapay, licensed mobile money platform, and Konga Express logistic company.
Ijogun said, “The efficiency of Konga’s cutting-edge online platform, access to thousands of merchants and Yudala’s expansive network of fully stocked offline stores is poised to give our customers the best shopping experience imaginable.”