Konga claims 800% growth
Composite electronic commerce platform, Konga, has set sights on the path of profitability after achieving an increase in turnover by over 800 per cent, and a huge reduction in losses over the past 18 months of acquisition.
Co-Chief Executive Officer, Konga, Prince Nnamdi Ekeh, who disclosed this in Lagos, recently, said the new management has reversed previous losses, and now growing the business to the delight of its new investors, which further boosted the hope for profitability by 2022.
He said: “We have reduced cost by over 45 per cent and also achieved growth of over 800 per cent 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 insisted that the new management 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 ventured.
Ekeh cited lack of local know-how and huge losses as the bane of the e-commerce sector, noting that Konga currently operates over 16 physical stores and hubs in Lagos alone, and has more than tripled the number of strategic stores and mega warehouses nationwide in less than 18 months of its acquisition.
He further affirmed that e-commerce is a complicated business requiring tact, world-class strategies and creative nous. “E-commerce is not just an extremely expensive project anywhere in the world with initial huge losses. It is a very complicated business.
“At Konga, we are locals with a network of quality foreign service providers. We understand the implications of not positioning infrastructure first. This is why we spent the last 18 months indirectly building our own facility nationwide and restructuring technologies to accommodate our ambition. Nigeria will experience the full scale of the Konga retail revolution in the coming months,” he stressed.