eCommerce operator boasts of enough capital despite low business
•Rejects $300 million from global investors
Despite the struggling nature of Nigeria’s electronic commerce (eCommerce) sector, which has led to the quitting of several operators, one of the surviving players, Konga, claimed to have recently rejected a $300 million global investment.
Although silent on these particular global financiers, Konga said its current investors have assured it of enough capital to survive the next five years, at least.
The co-Chief Executive Officer, Konga, Nnamdi Ekeh, who disclosed this at the weekend, said eCommerce remains an expensive business, especially in Nigeria.
According to him, the firm has invested well over $120 million since it was acquired two years ago in Nigeria alone, and now strategically structured to take on other African countries.
‘‘Though we started with a monthly loss of N400 million, but with new systems, structure and energy put in place, we have gradually been reducing losses and now to about N100 million loss per month.
“E-Commerce is an expensive project, but we are best positioned to deliver as a very innovative technology company,’’ he disclosed.
Ekeh, who described Konga as a technology company, revealed that it employs directly and indirectly over 150,000 Nigerians, most of whom are merchants, logistics and other service providers.
‘‘We partner to create a trusted and sustainable digitally-driven ecosystem and work hard to scale this to about 250,000 before the end of 2020.
‘‘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 $300 million from a consortium of global investors last year.
‘‘However, we are also keen to expand into other African markets after taking charge of the Nigerian market. The e-Commerce market in African is still a largely untapped one. Therefore, any company that makes the right in-roads will reap huge benefits from it,” Ekeh said.
He disclosed that the firm has also received enquiries from the New York Stock Exchange, the London Stock Exchange, and the Nigerian Stock Exchange to list on these markets.
But he said listing is something that will happen as part of the firm’s African expansion plan when Konga becomes a multi-billion-dollar business.