This weekend was all about an acquisition that many didn’t see coming — Zinox Group officially acquired Konga and all of its assets, including Konga.com, KOS Express, and KongaPay, a CBN-licensed mobile money platform with over 100,000 subscribers, for $10 million. However, It would interest you to note that this deal was a long time coming:
Also, contrary to what people think, Zinox Group acquired Konga exclusively, which means that Yudala (also under Zinox), has no stake in the acquisition. With that cleared, a lot of techies on Twitter shared their opinion(s) on what can be considered to be one of the biggest acquisitions of 2018.
For those who felt that Konga should be worth more than $10m:
At $10m, Konga's acquisition sends the wrong message to global investors. Definitely a huge discouragement particularly for tech-Nigeria. Absolutely nothing to celebrate here…..
— Kelechi (@the_real_inpoh) February 4, 2018
Konga should be worth more than a paltry $10m. At least $100m.
— HENRY Okelue (@4eyedmonk) February 3, 2018
Can’t buy majority stake in Konga for 10m
That’s ridiculously small
And if true, it isn’t good news mehn
Doesn’t speak well of the ecosystem
Terrible Terrible Exit
— Chief Agiri (@therealAGIRI) February 3, 2018
To those who think otherwise:
$100 million for a company that is not growing? No sir! Yudala just bought a liability.
— Efemena Ozore (@efeozore) February 4, 2018
Then we have techies like Marek and Victor Asemota who saw this coming way before it happened:
The slide I was using 3years ago predicting the real winner of Konga/Jumia fight will be Yudala, unless they change their strategy. #justsaying Zinox Acquires Konga in Landmark Industry Deal https://t.co/Hiv8ia3WyN pic.twitter.com/Pzoe3EcY7G
— Marek Zmyslowski (@marekchinedu) February 3, 2018
And those who tried to explain why it happened that way:
E-commerce is a long term game. Jumia has long term strategic investors/partners (Orange, AXA, MTN) and nt just financial investors like Konga. Jumia has better access to capital & better execution history (Rocket). Zinox is willing to run the marathon the others aren't #nutshell
— Michael Ugwu (@iam_magicmike) February 4, 2018
Of course, there are people who question Yudala’s current marketing strategies and how it would affect Konga:
Leo Stan Eke bought Konga.
After throwing away millions in this Yudala project and their biggest accomplishment seem to be spending money on concerts and billboards… pic.twitter.com/XMIs6lMzYs
— #NotInCourtRoom502 (@CheRox) February 3, 2018
And those who have started predicting Konga’s future:
With the current acquisition of @ShopKonga and new direction of the brand.
One can say Konga will be in Ghana very soon.
— 🇬🇭I Have the Answers (@OYAntwi) February 5, 2018
Now that Zinox have bought Konga
I see Konga becoming less competitive in the e-commerce space.
Yudala hasn't been fairly managed in terms of strategy sha
— PidginBlog.NG (@LadiSpeaks) February 3, 2018
On that note, Zinox reveals that with the acquisition, it intends to “up the tempo” by revolutionizing e-commerce with Konga at the forefront of this initiative. In addition to positioning the business on a path of profitability in the short term, Zinox added that its long-term plans are focused around seeing Konga well established in other African capitals.
Asides from strengthening Konga and the face of e-commerce in Nigeria, the acquisition is also expected to create employment opportunities for Nigerians: