Why Konga rejected a valuation of over $300m from global investors – Ekeh

Popular e-commerce company, Konga said it rejected a valuation of $300 million from a consortium of global investors last year because it is contented with the group currently funding the company, and its current investors have assured Konga of enough capital to survive the next five year at least.

Nnamdi Ekeh, co-chief executive officer, Konga Group, who spoke on Kaleidoscope, an interview programme aired on Channels TV on August 2, 2020, said that Konga has invested well over $120million since it was acquired by Zinox Group and merged with Yudala two years ago in Nigeria alone and is now strategically structured to take on other African countries.

‘‘We see ourselves as more than just an e-commerce company. Konga is a technology company and as a technology company, we are positioned to leverage that status in deploying new solutions and innovations.

Indeed, no one should be surprised if tomorrow, Konga starts launching space ships into orbit. Although we have received several offers from interested investors, we are content with the group that is currently funding Konga. The group is highly ethical and wants us to maintain the highest level of integrity. Our investors have assured us of enough capital to survive the next five years at least. This was why we did not accommodate a valuation of $300m from a consortium of global investors last year.

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‘‘Though we started with a monthly loss of N400m, but with new systems, structure and energy put in place, we have gradually been reducing losses and now about N100m loss per month. E-Commerce is an expensive project but we are best positioned to deliver as a very innovative technology company,’’ Ekeh said.

The business leader, who described Konga as a technology company revealed that Konga employs directly and indirectly over 150,000 Nigerians. Most of them are merchants, logistics and other service providers.

‘‘We partner to create a trusted and sustainable digitally-driven ecosystem and we are working hard to scale this to about 250,000 before the end of 2020.

According to Ekeh, the company is planning to expand into other African countries in order to reap the huge benefits of the e-commerce market in the continent which is still largely untapped.

‘‘We have also received enquiries from the New York Stock Exchange, the London Stock Exchange and the Nigerian Stock Exchange to list on these markets. It’s something that will happen as part of our African expansion plan when Konga becomes a multi-billion-dollar business,’’ he said.

“Our strategies and tact are 21st century influenced, but also taking cognizance of deficiencies in our country and that was why we spent the first two years rebuilding technologies, setting up secure but robust warehousing facilities and delivery,” he said.

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