Co-CEO of foremost composite E-Commerce giant, Konga Group, Prince Nnamdi Ekeh, has given fresh insights on the brightening fortunes of the company, revealing that so much work behind the scenes shortly after the merger with Yudala last year, have started to pay off.
The feat, according to him, is seen from the massive drop in losses and growth turnover by over 800 per cent, which he said, in now fueling projections that it will turn profitable before 2022.
He disclosed that the new Management of Konga has succeeded in reversing losses and growing the business to the delight of its new investors.
“We have reduced cost by over 45% and also achieved growth of over 800% in the past 18months. 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 36months’ 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 is 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.”
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.
Explaining more during the recently concluded Corporate Social Responsibility (CSR) programmes in Lagos and Abuja, Ekeh averred that the initiative, carried out under the auspices of Konga Kares –its social investment programme – is also set to hit other states in the country.
He said “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.”
According to him, lack of local know-how and huge losses remain the key pitfalls that have encumbered businesses in the e-commerce sector but Konga stands out.
