Business Black Friday For Konga Staff As CEO Announces 60% Staff Cuts

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According to Quartz Africa, it is a black Friday for the workforce of one of Nigeria’s biggest e-commerce players, Konga, as cuts its workforce by about 60% (300 members of staff).

Highlights from the Quartz Report:

• Announcement made by Konga CEO, Shola Adekoya on 30 Nov 2017
• Speculation that Sim Shagaya could return to CEO role which he left in 2016
• Nigerians preferred offline offers on Black Friday and went to retailers like Shoprite and Spar
• Konga has raised over $75 million dollars
• Active customer base is about 185,000 (approx 1% of Nigeria's population) but investors are still confident that it will reach profitability
• Konga has approximately 10,000 merchants
• Change in business model to include Merchant paying to list items on Konga (rental fee)

Konga had not yet responded to Quartz’s email inquiries at the time of publication.



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[Wakanda]

Active customer base is about 185,000 (approx 1% of Nigeria's population) but investors are still confident that it will reach profitability

I am surprised,just 185k so shocked actually. Are konga and co ever going to be as profitable as amazon etc in nigeria? Whatever business model they use, i iust feel it wont work, the logistics; delivery, rejection, courier and others will aleays be a problem plus nigeriams will never do the pay before delivery. I think they all made a lot of noise at first without focusing on doing d ground work.

 

[curator]

I am surprised,just 185k so shocked actually. Are konga and co ever going to be as profitable as amazon etc in nigeria? Whatever business model they use, i iust feel it wont work, the logistics; delivery, rejection, courier and others will aleays be a problem plus nigeriams will never do the pay before delivery. I think they all made a lot of noise at first without focusing on doing d ground work.

Amazon was not profitable for over a decade. Would not recommend it but, the investors believe that Konga is on its way to profitability. They might get there sooner if they succeed with the aggressive cost-cutting and direct revenue drive from merchants.