20131013191209Konga_Logo

I just stumbled across a transcript of Kinnevik’s Q2 2016 results earnings call. It’s a 31-page read, but one of the insights I gleaned from it was that Kinnevik values their 34% stake in Konga at SEK101 million (Swedish Krona), that’s $11.6 million. Back of the napkin math tells me that if 34% of the company is worth $11.6 million, then (throws napkin away and opens calculator app) the company’s worth $34 million. It was also revealed that they’ve got 184,000 active customers, 80% of which access the site via a mobile device. Wait, what?

For context, that’s around 0.1% of Nigeria’s population. The reason I’m not very surprised is that at the last Africabeta, Ope Adeoye from Interswitch said that there are only 200,000 active cards in Nigeria, as opposed to 97 million internet users. Even though internet subscription numbers look large, the addressable market for many of the services being built over here is MUCH smaller than is apparent. Toh.

One more thing. I reckon Konga has raised around $78 million till date. Compare that with their 184,000 active users, and you’ll find that the cost per acquisition is $424. Yup. At today’s official rates (since Grandmaster Buhari and his side-kick Emefiele are always right), that means that you cost around Konga ₦133,500.

One more thing (I mean it this time). Konga’s monthly page view count cannot be anywhere as low as 184000. I don’t agree. It’s obvious that people are using online services (not just Konga) as directories before making their purchases elsewhere. Come online, window-shop, then go and buy the product elsewhere. On another day, we’ll talk about how distrust in online payments platforms contributes to all this. 🙂

Source – Kinnevik [pdf]

Read this next
More From TC
bus_driver_africa

A Kenyan online platform for reviewing and buying bus tickets in Africa has completed a seed round. Beyond ticketing, QuickBus lets users review and rate experiences on bus travel platforms, Wamda reports. They are currently in operations in Kenya, Uganda, and Angola, and have secured partnerships in seven countries. Routes available on the platform include […]

My first 9Mobile SIM was registered with a roadside agent. I submitted my fingerprints, a photo of my face, address, full name, date of birth, state of origin, and everything that can be used definitively to identify me. A few weeks later and unable to purchase an internet bundle subscription, I visited a contact centre […]


TechCabal is a Big Cabal Media brand



Copyright © 2020
All rights reserved

Privacy & Terms