Business Nigeria's Konga on its Way to Profitability - Kinnevik

[LequteMan]

Swedish investment firm, Kinnevik AB has proclaimed that Nigerian e-commerce giant, Konga, is on its way to profitability.

In its interim report for the first 3 quarters of the year 2016, Kinnevik said Konga's active customers per end of August increased by 5% compared to last year, as "the firm focused on improving operational efficiency.

This is a considerable deviation from the previous report in which Kinnevik literally threw Konga and it's valuation under the bus, causing major headaches across the entire ecosystem.

In the 2016 interim report, Kinnevik said "the shift to a marketplace model is progressing successfully, with a substantial growth in marketplace GMV versus previous year.

"Konga is progressing well on its path to profitability and reached break-even before overhead costs for the first time in September 2016

Founded in 2012, Konga is one of the largest general merchandise marketplaces in Nigeria and ranks as one of the top 15 websites in the west African nation.

 

[ProfRem]

This is a good break-even. I hope they profit gets sustained at the end of the whole accounting period.

Overhead cost will certainly surpasses this 5% or returned a marginal profit.


Either ways, good news for Konga in a hard-to-do business 2016 economies.

 

[LequteMan]

Good news and all but I think Konga still has a long way to go.

Many people say Nigeria isn't fertile enough for online marketplaces. They're right in some measure.