Naspers Acquires 50% Stake in Konga.com

Naspers, South African media giant has acquired a 50 percent holding in Konga.com, the leading Nigerian online general merchandise store, for an undisclosed amount.

Meloy Horn, Naspers’ group information relations officer confirmed the acquisition adding that the media giant was “anticipating favourable collaborations involving both parties in the near future.”

“Nigeria will possibly soon be the largest economy on the African continent, therefore as an investor we are keen to participate in the growth of a promising African market,” Horn said.

Konga which was launched in July 2012 by serial entrepreneur Sim Shagaya with 10 staff has grown to employing over 70 workers.

In recent interview, he told CNN’s Vladmir that he doesn’t regret leaving the US to build a business in Nigeria.

The investment comes a few months after JP Morgan reportedly invested millions of dollars in another major Nigerian online retailer Jumia.

Also, on Wednesday, Jumia announced a $26 million investment from leading growth equity investor Summit Partners.

“The middleclass is growing. Consumption is on the increase,” Tunde Kehinde, Jumia founder said in a recent interview.

“With the additional capital, the konga.com management team will invest in growing the business and enhancing customer service,” the report quoted Horn as saying.

Horn “declined to make comment on the terms of agreement and Naspers’ future investment interests.”