Konga May Soon Pull a Merger with Yudala

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Konga May List on Either the London Stock Exchange or New York Stock Exchange by 2020

Konga, a leading Nigerian e-commerce company may soon pull a merger with another e-commerce giant, Yudala. This move has been highly anticipated and may see them assume the reins of leadership in the Nigerian e-commerce space.

According to Punch, the move was part of the ongoing restructuring of the company aimed at building a strong brand and attaining market leadership in the e-commerce industry.

Konga, founded in 2012 by Sim Shagaya was recently acquired by Zinox Group this year after negotiations with its main investors, Naspers and AB Kinnevik. Recently, Konga appointed former Vice President of Nokia, Nick Imudia, as the Chief Executive Officer, following the exit of Shola Adekoya.

Yudala, Nigeria's third biggest e-commerce website
Yudala, Nigeria’s third biggest e-commerce website

Yudala, the third biggest e-commerce website in Nigeria was launched about two years ago. Also owned by Zinox group, it is Africa’s pioneer composite e-commerce company. One notable thing that has helped its rise is that it offers a retail roll-out strategy and a network of physical stores, which has helped the company reach many unserved and underserved Nigerians, as well as claims to the sale of genuine products.

What Would this Merger Mean for Both Companies?

Both owned by Zinox group, a merger between both companies will result in a combined market, and this may see the emerging company become the biggest e-commerce company in Nigeria. And as viewed by Industry experts this move may serve as a game-changer for the e-commerce space.

Another significant point to note is that their merger will result in a combination of Konga’s huge online presence as well as Yudala’s physical stores. This combination will not only broaden the of Nigerian e-commerce space (like that of Amazon and Alibaba) but would also ensure that users shop with easier shopping process both online and in person.

Nigerians will now have more options and access to a large range of products.

 


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