Konga and Yudala announce a Merge Truce
After Zinox group Acquired Konga, we soon waited to see what was to be brought on the table, and the results are starting to be revealed. Before Konga’s Acquisitions, it was one of the largest online malls and Yudala, the pioneer composite e-commerce company was also a strong offline and online retail shop. Even though Zinox initially said it would not consider a merger at the time it acquired Konga, the company now says it will benefit more from combining the strengths of both companies rather than having them operate as competitors.
The Merger which is to take effect on May 1st, 2018, will see Yudala and Konga merge into one brand name to effectively facilitate the betterment of e-commerce in the Continent and the ecosystem. Former key shareholders Kinnevik and Naspers, who had provided much of the $78.5 million Konga had raised since inception, were bought out for undisclosed amounts but likely at a loss. Konga CEO Shola Adekoya also stepped aside soon after the acquisition.
Name a more #IconicDuo than Konga & Yudala, we will wait 😁✌#TheNewKonga 💪 https://t.co/NoT2Dnt1OM
— Konga Nigeria (@ShopKonga) April 17, 2018
Under the new arrangement, Konga will have two CEOs. Nick Imudia will be in charge of online while Yudala Vice President, Nnamdi Ekeh will handle offline activities, which seems to be the strength of Yudala.
In togetherness, we can build a CASTLE
Yes 💪💪💪#KongaYudalaMerger #TheNewKonga #TheSynergyWillBlowYourMind pic.twitter.com/EaPLceY3FH
— Konga Nigeria (@ShopKonga) April 16, 2018
Quoting QZ
” In merging, Konga and Yudala will pretty much be carrying out an experiment to combine online and offline operations on a larger scale than ever before in Nigeria. Since its launch in 2015, Yudala has maintained offline retail outlets—21 stores across 10 Nigerian cities—while Konga’s has garnered a reputation for its strong online presence and technological backbone. Its online marketplace listed over 10,000 merchants at the time of Zinox’s acquisition and it has pushed in-house solutions including KongaPay, a mobile payment solution, in response to Nigeria’s online payment problems. Those assets will now be combined with Yudala’s offline operations in Nigeria. ”
“Combining forces to power the new Konga will enable us effectively achieve our goals of platform expansion and accelerated growth, as we embark on an ambitious journey to redefine the retail ecosystem with the industry’s most advanced technology,” disclosed Konga Chairman, Olusiji Ijogun.
A new day.
A new phase.
A new race…#TheSynergyWillBlowYourMind #ShopSmartLiveWell pic.twitter.com/m40fVvVeVR
— Konga Nigeria (@ShopKonga) April 16, 2018
