Zinox Group, an integrated information communication technology (ICT) solutions conglomerate and original equipment manufacturer (OEM), has concluded the acquisition of e-commerce giant, Konga in a move that is expected to raise the profile of e-commerce in the country, Leo Stan Ekeh, chairman of Zin ox Group has confirmed to Business.a.m
Ekeh who spoke top Business.a.m said the transaction has been approved by the Securities and Exchange Commission (SEC).
Analysts say the acquisition is a major development that could see e-commerce in Nigeria finally unlock the massive revenue potential in the global multi-billion-dollar industry.
The move is also expected to see Zinox make a bold return to an industry it pioneered in Nigeria with the launch of BuyRight Africa.com which was challenged by the absence of credit card and e-payment infrastructure when it was launched over 12 years ago.
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Details of the deal include Zinox Group, one of Africa’s biggest technology group assuming ownership of the e-commerce platform, Konga.com which remains as one of the biggest players in the sector.
This development, coming at a time when global e-commerce spending is expected to top previously unheralded levels, is widely expected to reposition Konga for a greater share of the e-commerce purse in Nigeria and beyond.
Also, some industry analysts estimated that the acquisition could lead to the integration of Konga and Yudala, which is owned by Ekeh’s son, to wade off competition and make it one of biggest e-commerce companies in Africa.
In 2017, retail e-commerce sales worldwide amounted to $2.829 trillion while e-retail revenues are projected to grow to $4.48 trillion by 2021.
Ekeh explained that the acquisition was expected to create employment opportunities for over 750 Nigerians, both at home and in the Diaspora, saying that many erstwhile employees of the company laid off in the restructuring process may be recalled.
Konga recently announced a shift to a prepay-only model, essentially putting a stop to Pay on Delivery (PoD) – a significant decision which formed part of an internal restructuring aimed at putting the business on a sound footing in the market.
This move, coupled with the new investment, were expected to spark an upturn in the company’s fortunes which will see Konga assume a more significant share of the e-commerce market.
Led by serial digital entrepreneur, Ekeh, the Zinox Group has grown from a position of strength to become one of the biggest names on the African technology scene.
With its headquarters in Lagos, Nigeria and branches all over the country in addition to hubs in Africa, Asia, Europe and the Middle East; the Zinox Group boasts a 360-degree spectrum orientation as an integrated ICT solutions group with advanced competencies in manufacturing, distribution, retail and after-sales support, among others.