Konga, Nigeria’s number one composite E-Commerce giant, has revealed it has set its sights on the path of profitability after achieving an increase in turnover by over 800% and a huge reduction in losses over the past 18 months since its acquisition.
This was disclosed by Co-CEO, Prince Nnamdi Ekeh.
Prince Ekeh revealed that the new Management of Konga has succeeded in reversing losses and growing the business to the delight of its new investors. The development has further raised expectations of the company hitting the path of profitability by 2022.
“We have reduced cost by over 45% and also achieved growth of over 800% in the past 18 months. We are working very hard to meet investors’ expectations. It is true we are incurring huge losses now based on the e-commerce business model. However, we have 36 months’ cash reserve to build Konga as a success.
“We are ambitiously scaling Konga and that is why we launched a successful Konga Travels and Tours that are currently making huge waves in the travel booking industry. In addition, we have other approved projects and new lines of businesses that are set to be unveiled soon.”
Prince Ekeh recently spearheaded a major Corporate Social Responsibility (CSR) project anchored by the company. Konga had visited three orphanages in Lagos and Abuja where it donated to the needy and less-privileged. The initiative carried out under the auspices of Konga Kares – its social investment programme – is also set to hit other states in the country.
According to him, the company has put in so much work behind the scenes and is now ready to take the lead.
“We have spent the last year restructuring the business and positioning it on a very solid footing. This is evident from the huge strides we have recorded over the period and the several other viable business units and subsidiaries that have taken flight within the Konga Group. Indeed, we are preparing to lead in this space,” he ventured.
Prince Ekeh cites a lack of local know-how and huge losses as pitfalls that have encumbered businesses in the e-commerce sector – areas in which Konga stand out.
Konga currently operates over 16 physical stores and hubs in Lagos alone. Further, the company has more than tripled the number of strategic stores and mega warehouses nationwide in less than 18 months of the acquisition.
Continuing, Prince Ekeh affirmed that e-commerce is a complicated business requiring tact, world-class strategies and creative nous.
“E-commerce is not just an extremely expensive project anywhere in the world with initial huge losses. It is a very complicated business.
“At Konga, we are locals with a network of quality foreign service providers. We understand the implications of not positioning infrastructure first. This is why we spent the last 18 months indirectly building our own facility nationwide and restructuring technologies to accommodate our ambition. Nigeria will experience the full scale of the Konga retail revolution in the coming months,” he concluded.