Since the acquisition of Konga by Zinox Group in 2018, the company has grown more than 750 per cent. Customers have also hailed the company for its quality service delivery.
Konga.com is a Nigerian e-commerce company founded in July 2012 with headquarters in Gbagada, Lagos State. It is owned by Mr Leo Stan Ekeh, chairperson of Zinox.
Konga offers a third-party online marketplace as well as first-party direct retail spanning various categories including consumer electronics, fashion, home appliances, books, children’s items and health care products.
This company was formerly owned by Sim Shagaya who founded it in July 2012 with 20 staff. At the beginning, the site functioned as a Lagos-only online retailer focused on merchandise in the Baby, Beauty, and Personal Care categories, but expanded to all of Nigeria in December 2012 and gradually expanded merchandise categories through 2012 and 2013.
It is widely believed that this expansion may have been a response to Konga’s major competitor, Jumia, which launched around the same time and was functional across all categories.
Konga, after laying off over half of its staff was acquired by Zinox, a Nigerian firm that manufactures and distributes computers. After acquiring Konga, Zinox made some leadership changes.
In March 2018, Olusoji Ijogun was appointed as its chairman. He is a former UAC Foods and Unilever executive
A few weeks later, Nick Imudia who is the immediate past Regional Director TCL/Alcatel was appointed in place of Shola Adekoya, as Chief Executive Officer of Konga. Another CEO is Prince Nnamdi Ekeh.
Business Hallmark gathered that one of the ways Konga became bigger was that Zinox merged Konga.com with its retail outfit, Yudala, maintaining the Konga brand name. With this merger, many tech experts argue that Konga.com is the biggest e-commerce & retail company in Africa.
It would be recalled that Yudala was doing well before merging with Konga.com which has now made it to execute pure omni-channel retail which is the first time in Africa.
While Konga faces competition from other dominant African digital commerce platforms, such as Jumia, Kilimall, Patricia.com.ng and Sunvait Network Ltd, due to the strong agency networks these platforms have, they are not in a hurry to expand the list of the items they sell. For now they are focused on quality service.
In 2014, Jumia registered some Konga domains outside Nigeria which caused huge uproar in the technology scene. Konga had been talking up the possibility of expanding outside Nigeria which Jumia was already doing with Jumia having operations in more than 8 countries across Africa. The move was read by industry stakeholders as Jumia trying to stifle Konga’s growth.
According to the Co-Chief Executive Officer (CEO) of Konga Group, Nick Imudia, the financial result of the e-commerce company shows Konga is on its way to becoming the most profitable e-commerce business in Africa.
In Nigeria, over the years, e-Commerce companies have generally struggled to make profit. Not only does the online retail sector have a high-entry barrier, cost of sale is usually high; thereby making profitability very difficult.
The confidence Imudia has about Konga being the first profitable e-commerce venture has a lot to do with the company’s achievements within one year.
According to Imudia, the recent financial result has shown that Konga will keep the promise it made to the stakeholders. Further stating that the growth of the company, earned Konga a rating from early Metrics.
On expanding the company, Imudia expressed that the company is taking its time in order not to hit any bumps. He said the company is moving forward one step at a time, stabilising the operation in Nigeria before making a move for neighbouring countries.
“We understand this market more than any competitor and have been investing creatively nationwide to resolve issues like warehousing, delivery logistics and payment headaches including working with Microsoft in the past five months to deploy the most robust technology platform that will manage our aggressive expansion.
“We are almost there and few weeks from now, the nation will start feeling the power of Konga before start rolling out to other English-speaking West African countries.”
Konga is not is not raising funds like Jumia. According to Imudia, Konga’s management has enough resources to drive the company’s ambitions. Therefore, the company doesn’t need investors to fund for now.
He said making the company profitable first is the priority before the company then begin to conside accepting investment, as Imudia disclosed that a number of investors have already shown interest in Konga.
‘As you know, our investors are people who take commercial decisions and are not into losing money as a lifestyle. The management of Konga has enough resources to drive the company’s ambitions of becoming number one in Africa.
“As a result, it is not looking to rush to take investor funds, even though we have received quite a number of very good offers from potential investors in the past few months.
“We want to make it profitable first and then invite value-adding investors, not just cash investors. I am sure you know the capacity of our investors. They are experienced, successful and have combined local knowledge and international network of over 35 years.
Imudia also said that Konga has grown more than 750 per cent since acquisition by Zinox Technologies.
Eze Ikechukwu founder of Ice Techy, an information technology company, in a chat with Business Hallmark, was of the view that perception is also one of the main reasons Konga is growing rapidly. He said, “Consumer confidence is there because people know who acquired Konga. He is a man of integrity, a man with taste for good things. He has built his reputation over the years for his penchant for quality service delivery. This is something that has endeared many consumers to Konga since it was bought by Zinox.
He continued. “While many companies are quick to invite investors and put up shows to make their companies look like all is well, Konga believes in reality.”
Konga is more concerned about service delivery. So far it has been almost excellent according to the feedback Business Hallmark got from most of the customers that were interviewed.
Over the weekend, there was a debate on Twitter, one of the most popular social media platforms about e-commerce companies in Nigeria. And one Abdullahi Idris tweeted, “Konga is fast becoming like garri. It does not need much advert for people to know that they need it. They are not only fast in delivering whatever item you order for, their service is also affordable for low income earners.”
That statement resonated with many twitter users who went ahead to give their experiences.
Another Twitter user who goes by the name @Adboy wrote: “With the biting economy, it is better to deal with a company that understands the economic situation of the country. Apart from the fact that they deliver whatever you order for fast, the items are very affordable. “
Enejo Shuaibu a social commentator was of the view that “We have seen companies do adverts upon adverts without delivering on their promise. The money some of these companies spend on advert can be put to improving their service. The best form of advert is efficiency and that is what Konga seems to be doing.”
Business Hallmark paid a visit to one of the outlets at Medical road, Ikeja. The store was crowded with people who were buying items of their choice. This reporter met with the manager of the outlet who simply identified himself as Kizito. He said, “What we do is e-commerce. We have our offline stores. This is one of the offline stores. We sell phones computers, accessories, Wine and spirits, electronics, home and kitchen appliances and all that. But when a customer comes and a particular item is not available, we refer them to the online section.
Asked if they sell food like Jumia, he said, “We don’t sell food. We don’t deal with restaurants yet. Maybe in the future. For now we are taking things one step at a time. We are not in a hurry to sell everything. When the time comes will sell more things. In the future you may hear there is Konga food. If you need more information, visit our website or go to the head office at Gbagada.”