Co-Chief Executive Officer of Konga, Nnamdi Ekeh, said despite investors’ lack of interest in the e-commerce business in 2019, Konga has taken the forefront of driving the online marketplace growth that has led to restoring investors’ confidence.
Since Konga was acquired by Zinox Group, the Nigerian e-commerce platform has been able to grow its revenue by eight times, while also reducing its costs by 65%. Ekeh attributed Konga’s growth to the company’s long-held tradition of ethical conduct and realistic business model.
He said this had kept Konga at the apex of the e-commerce industry in Nigeria. “Konga is undoubtedly one of the miracles of the Nigerian e-commerce sector. We have not only shown our qualities as a shining light in the industry; but our track record of ethical behaviour, landmark innovations and sound business practices were critical factors that restored investor and customer confidence in the Nigerian e-commerce market in 2019.
“We were not only able to grow revenue by eight times in 2019 but we have also been able to reduce our costs by 65%. That is a significant figure. Also, our flagship year-end promotion, Konga Yakata, lived up to its billing as the biggest sales event of the year, offering access to tons of genuine products delivered swiftly at the best prices for millions of Nigerians nationwide.’’
Problem with e-commerce: The e-commerce market had been affected by a report written by US research firm, Citroen. The firm wrote a report on Jumia’s IPO on Wall Street, which resulted in a lawsuit from investors. Ekeh said this affected the e-commerce business, as investors’ confidence dropped.
According to Ekeh, analysts believe the development may have hampered the efforts and chances of other prospective players on the African e-commerce scene in attracting critical investment and winning over a highly sceptical consumer base. He said Konga went a long way in restoring investor and customer confidence in the Nigerian e-commerce sector.
Konga Pay and Kxpress on the move: Ekeh stated that Konga’s mobile money platform, Konga Pay, which is licensed by the Central Bank of Nigeria (CBN), is experiencing increase in adoption. Also, he opined that Konga’s logistics platform has succeeded where other e-commerce’s platforms have struggled.
Meanwhile, Konga has been making an inroad into other markets such as travel which Jumia is also operating in. Konga Travel is a subsidiary of Konga, which Ekeh said had grown nearly 25% on a year-on-year basis, among other upcoming business units. Note that Konga has been rolling out stores in its bid to reach more of Nigeria’s under-served population.
“We have also invested significantly in state-of-the-art regional warehousing facilities which enables us retain inventory in diverse states and locations in Nigeria; which, aligned with our growing network of over 30 retail stores dotting Nigeria’s landscape, makes us closest to the people,” Ekeh said.
He added that, “It is no surprise that Konga has been listed as one of the top 20 brands to watch in 2020. This is proof of the significant achievements and strides we recorded in 2019. But we have not even unveiled a quarter of what we have in stock for the market. There are many more exciting things to come this year.”