Konga, popular e- commerce company seems to be setting its sight on the path of profitability after achieving an increase in turnover by over 800 percent and recording reduction in losses over the past 18 months since its acquisition.
Nnamdi Ekeh, the company’s co- CEO revealed that the new management of Konga has succeeded in reversing losses and growing the business to the delight of its new investors. The development has further raised expectations of the company hitting the path of profitability by 2022.
“We have reduced cost by over 45 percent and also achieved growth of over 800 percent in the
past 18 months. We are working very hard to meet investors’ expectations. It is true we are incurring huge losses now based on the e-commerce business model. However, we have 36 months’ cash reserve to build Konga as a success.
“We are ambitiously scaling Konga and that is why we launched a successful Konga Travels and Tours that is currently making huge waves in the travel booking industry. In addition, we have other approved projects and new lines of businesses that are set to be unveiled soon,” he said.
Ekeh recently spearheaded a major Corporate Social Responsibility (CSR) project anchored by the company. Konga had visited three orphanages in Lagos and Abuja where it donated to the needy and less-privileged. The initiative, carried out under the auspices of Konga Kares its social investment programme – is also set to hit other states in the country.
According to him, the company has put in so much work behind the scenes and is now ready to take the lead.
“We have spent the last year restructuring the business and positioning it on a very solid footing. This is evident from the huge strides we have recorded over the period and the several other viable business units and subsidiaries that have taken flight within the Konga Group. Indeed, we are preparing to lead in this space,” he said.
Ekeh cites a lack of local know-how and huge losses as pitfalls that have encumbered businesses in the e-commerce sector.
