Previous reports had it trending that Konga is in talks of acquisition by international payment solutions provider, Interswitch. However, the Chief Executive Officer of Konga, Sola Adekoya has refuted such reports by clarifying the staff of the company that such news holds no water.
The report about the Konga’s supposed acquisition by Interswitch suggested that Interswitch was aiming at diversifying its portfolio. Even if Interswitch aims to diversify its portfolio, it’s definitely not with the acquisition of Konga.
Well, top players in the Nigerian tech ecosystem such as the Head of Digital Strategy at Voguepay.com, Wole Ogunlade talked about the supposed Konga acquisition deal.
“One thing is clear, the leadership at Interswitch are poised to remain relevant by using digital transformation initiatives to improve their competitive edge even, as its market is being disrupted by new players and global competitions”.
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“If you look at this development in that light, one can easily see that Interswitch’s acquisition of Konga is strategic as it will allow it to diversify in the wake of competitions to its vertical business i.e payment. Right now eCommerce is arguably a good niche as it is a major driver of online payment in Nigeria. This means that Interswitch can eat a piece of the pie to increase its volume of transaction flow”.
“This proposed acquisition will be part of a grand move by Interswitch to control the entire payment and lifestyle value chain in Africa when you understand that Interswitch is putting its hand in several verticals including “buying” a bank in East Africa, and its other strategic global partnership ambitions”.
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At the sight of such reports, you’ll question why such a successful company like Konga will even think of entering into a negotiation table to grant its ownership to another company. Although, when you look at the situation of the nation’s economy, and you look at the switch in ownership of top firms like Etisalat Nigeria, it becomes so easy to believe.
It’s actually good to know that one of Africa’s largest online marketplace is still retaining its leadership.