E-commerce startup, Konga has revealed that it turned down about $300 million funding from a consortium of global investors, despite losing over N100 million monthly.
The revelation was made by the Co-Chief Executive Officer, Konga Group, Prince Nnamdi Ekeh in a recent television interview.
According to the Konga boss, the company rejected the funds in order to maintain a high level of integrity in the company.
“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 want 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 $300m from a consortium of global investors last year.
He added that the companies investors already promised enough capital to run the company for the next 5 years.
Over 100 million in Losses
Since the acquisition of Konga by the Zinox Group in December 2018, the e-commerce giant has invested over $120 million in its Nigerian operations. However, the operations of the company are still incurring huge losses monthly.
According to Nnamdi, the company was incurring a loss of over N400 million monthly when it first start, but diligence and strategic approach to business has reduced the loss to just about N100 million.
Despite the losses, the e-commerce company remains the biggest rival to Jumia in the Nigerian Market. The company also plans to expand into other African markets after taking charge of the Nigerian space.
Konga, which prides itself as a technology company believes that it got all it takes to achieve its goal.
Speaking on Konga growth, Nnamdi expressed that “We partner to create a trusted and sustainable digitally-driven ecosystem and working 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.”
Looming IPO
Following Jumia’s footstep, the company is also planning to list its shares in reputable stock exchanges including the Nigerian Stock exchange, New York Stock Exchange and the London Stock Exchange.
According to the Konga boss, the company has already received enquiries from reputable stock exchanges about listing and they are already planning to list as part of their plans for African expansion.
Last year, sources reported that Konga Group is planning an Initial Public Offering on the New York Stock Exchange by 2020, which will see the business valued at $3.5bn
Despite turning away about $300 million in funding, an IPO could provide more than enough capital to expand its African operation.
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