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[Nigeria] Zinox Group acquires Konga

The Zinox Group, an integrated ICT solutions and Original Equipment Manufacturer, has acquiired Konga after several months of negotiations with major investors, Naspers and AB Kinnevik.
As part of the acquisition, Zinox Group would assume ownership of the e-commerce group which includes, Nigeria’s largest online mall; KongaPay, a CBN-licensed mobile money platform with over 100,000 subscribers as well as KOS-Express, a digitally-driven and world class logistics company.
Naspers, based in South Africa, is a broad-based multinational Internet and media group, offering services in more than 130 countries while AB Kinnevik, founded in 1936, is a Swedish investment company investing primarily in digital consumer brands.
A statement by the company said through the acquisition, the Zinox Group would expand its operations into e-commerce, an industry it pioneered in Nigeria with the launch of BuyRight, which was challenged by the absence of credit card and e-payment infrastructure when it was launched over 12 years ago.
According to the group, the acquisition has passed all regulatory approvals by the Securities and Exchange Commission (SEC).
The company said the acquisition was expected to create employment for over 5,000 Nigerians, both at home and in the Diaspora within a short period.
According to the Head of Corporate Communications, Zinox Group, Gideon Ayogu, the decision to invest in Konga was an easy one for the organisation.
“We have always had an interest in Konga and another big one you know very well but our priority was Konga first because of the integrated nature of the four quality companies in one,” he said.
“Konga is a world-class, professionally-run company whose landmark strides in the sector have gone a long way in ushering millions of Nigerians into the ease and convenience of online shopping while boosting the conduct of e-commerce in the country. Konga’s integrity is their pride.”
“Today, many Nigerians can attribute their first experience of e-commerce to and we are excited to be a part of this remarkable story. Many shoppers can also attest to the speed and efficiency in delivery 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 revolutionising e-commerce on the African continent, with Konga at the fore-front 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.
Furthermore, we will be unveiling a lot of new initiatives soon and we advise shoppers and merchants alike to look out for these innovations which will radically reshape the average customer experience of e-commerce in Nigeria and on the continent and put more money in their pockets,” he noted.
Konga was founded in 2012 by by Sim Shagaya and raised a $3.5m seed round from AB Kinnevik in the same year which allowed to expand its merchandise category.
In early 2013, Konga raised another $10m series A funding from AB Kinnevik and Naspers and in the late 2013, it finalised a $25m series B funding from the two investors.

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