Every month, I was giving my son, who is running Konga, 400 million naira inter company loan to stabilize the company , it is 5 years now, I’m still giving him the monthly subvention to sustain the business but Konga is still a loss making company says Zinox Chairman
Billionaire digital entrepreneur and Chairman of Zinox Group, Leo Stan Ekeh, said, weekend, that massive investments have been made in Konga, an eCommerce giant, since its acquisition five years ago.
He made this known at the 2022 Africa Retail Congress, organized by the Lagos Business School.
The conference, which had in attendance key stakeholders across different sectors of the economy, discussed “The Future of Retail: Positioning Africa as a Retail Hub.”
He says, “To run an eCommerce business, you have to be on drugs. When I acquired Konga, I was giving my son running Konga N400 million in cash every month, aside from the typical investment across the nation. I’m still giving them. This is the fifth year. So, I always tell them that if I bought houses in Lekki, I’d have 100 duplexes and no one would know.
“The cost of technology and the cost of analytics are huge. We have spent about N200 million on that. This month and next month, Konga will spend N650 million on marketing.”
In 2018, Zinox Group acquired Konga after a month-long negotiation with major investors, Naspers and AB Kinnevik.
Zinox assumed ownership of the e-commerce group, which includes Konga.com, an online mall; KongaPay, a CBN-licensed mobile money platform with over 100,000 subscribers and rated as one of the best mobile money channels in the country, as well as KOS-Express, a digitally-driven and world-class logistics company with advanced delivery capabilities for Konga and other structured companies nationwide.