Konga and Yudala, two of Nigeria’s leading e-commerce companies are mulling a merger, according to a report in the Punch Newspapers, in what is widely seen as a highly strategic move that will see them ultimately assume leadership of the e-commerce space.
Feelers indicate that the merger will take effect from April 2018.
However, the overwhelming position among industry experts point to the merger of Konga and Yudala as a potential game-changer for e-commerce in Nigeria. In their view, a merger between both companies will involve a synergy of Konga’s impressive online platform and robust technology as well as Yudala’s ubiquitous physical store presence and access to genuine products.
In addition, the merger will significantly raise the combined market share of both companies, effectively making the emerging force the biggest e-commerce company in Nigeria.
Furthermore, there is widespread optimism that the combined strengths of Konga and Yudala will not only significantly broaden the scope of e-commerce in Nigeria, but will also go a long way in improving consumer experience by lending more ease and convenience to the shopping process, offering more options to potential and existing shoppers and expanding access to an even wider range of products, services and solutions for Nigerians.
Founded in July 2012, Konga has dominated the news recently after its acquisition by the Zinox Group, Nigeria’s tech giants after months of intense negotiation with major investors, Naspers and AB Kinnevik. The company had wasted no time in announcing a couple of strategic management decisions, with the appointment of Olusiji Ayodele Ijogun, a seasoned and widely experienced technocrat as Chairman and Nick Imudia, a renowned business leader and former Vice President of Nokia as Chief Executive Officer (CEO).
Yudala, on the other hand, holds the enviable status of being Africa’s pioneer composite e-commerce company. Launched a little over two years ago, Yudala’s ambitious retail roll-out strategy and network of physical stores has helped the company reach many unserved and under-served members of the Nigerian populace. The company has also been bold in making a statement of intent with its emphasis on genuine products and best prices.