What we can expect from Konga-Yudala marriage

April 16, 2018
2 min read

It is official. Yudala is merging with Konga in what seems to be a calculated attempt to capture the Nigerian eCommerce space.

According to The Guardian, Zinox Group’s latest acquisition, Konga, will be joining forces with Yudala — another of the group’s subsidiaries — from May 1, 2018. The resulting company will operate as 'Konga.com'.

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.

Earlier in the year when Zinox Group acquired Konga for an undisclosed figure, we anticipated a possible merger between the two eCommerce platform, but the group claimed the two would not be combining their business activities.


Now that both will be operating under the same umbrella, the good part of the consolidation is that both companies are bringing their comparative advantages to the table. They may end up, directly or indirectly, controlling what happens within Nigeria's eCommerce sector.

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The coming together of these companies could revolutionise the sector, as we have a company that will be playing in the entire value chain of the eCommerce sector.

Konga, for its part, has a culture of providing in-house solutions to peculiar problems facing the eCommerce sector. This has given birth to its payments as well as delivery subsidiaries -- KongaPay and KOS Express.

Konga also experimented with Spaceship, a solution that handled warehousing and logistics for third-party sellers on the platform. We can expect the new Konga to keep to the path of proffering in-house solutions to problems facing the sector?

Yudala, on the other hand, maintains offline stores across and outside Lagos. This will augment the activities of KOS Express to tackle logistics, which is one of the major challenges of the sector.

The major challenges of eCommerce in Nigeria are payment and logistics and Konga, alongside Yudala, has already figured that out. Hence, it won't be out of place to expect the new Konga to perform at optimum while also addressing the other challenge of the sector -- trust.

Maybe we can finally expect profitability in the Nigerian eCommerce space, considering that Yudala is looking forward to hitting profitability by the year 2022 and is now merging with a bigger player in the sector.

Mobile & African Tech Enthusiast │ Data Analyst │ Music
Mobile & African Tech Enthusiast │ Data Analyst │ Music
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Mobile & African Tech Enthusiast │ Data Analyst │ Music

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