Nigeria’s online market, Konga was distressed in 2016 and this was accompanied by a disengagement of a number of staff members. The company initially blamed it on the tough economic situation but later on said that it was a business development strategy to review staff strength bi-annually. However, a few months down the line, the company has been acquired by Zinox, Thisday reported.
According to the news report, the Information Communication Technology solutions conglomerate and Original Equipment Manufacturer (OEM) has concluded the transaction with Konga, which has also been approved by the Securities and Exchange Commission (SEC). It’s expected that this acquisition would be a major development for the ICT company to make a comeback to Nigeria after the disruption of BuyRight Africa.com which was launched 12 years back but was greatly disadvantaged due to the absence of an e-payment infrastructure.
Some analysts have revealed that the move by Zinox Group is a bold one, seeing that Konga remains one of the top players after Jumia in the online market sector in the country in the terms of efficiency and speed in delivery. On the bright side, the acquisition will likely create job opportunities for about 750 Nigerians and there’s a great possibility that affected staff members who were laid off during the period of the recess may be recalled.
The Head of Corporate Communications, Zinox Group, Mr.Gideon Ayogu confirmed the newest development and attested that acquiring Konga was a big win because of its standing excellence in the world of online shopping in Nigeria. Despite its recess over the years that led to its constant lay-off of staff members, it was devoted to providing Nigerians with a world-class shopping experience and boosting the confidence of many shoppers in Nigeria. He said:
“Many shoppers can attest to the speed and efficiency that characterizes Kos Express, the company’s logistics arm, which is arguably the best in the sector at the moment. Our ambition is to up the tempo by revolutionizing e-commerce on the African continent, with Konga at the forefront of this initiative. In addition to positioning the business on a path of profitability in the short term, our long-term plans are focused around seeing Konga well established in other African capitals.”
Notably, Konga recently announced that it was putting an end to the Pay-on-Delivery option, a major restructuring tool that was aimed at making the business stand firm and assume a more significant role in the e-commerce market. Zinox sure acquired the company at a good time when a restructuring was expected to spark a positive turnover of the company’s bottom-line.