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]

More From TC
A lot is happening at Flutterwave right now
startups
15th October 2018

Series A extension funding. Legendary payments icon joins the board. And the departure of its celebrity CEO.

Solar Saves Lives: One Hospital’s Story
people, startups
21st September 2018

Nigerian businesses including hospitals critically need power to survive and for some, to save lives. Renewable energy (especially off-grid) presents a strong proposition to address the power challenges.

830 Pregnant Women Die Daily, How Can Tech Help?
Funding, people, startups
21st September 2018

The top 20 countries in the world with the highest maternal mortality rates are in Africa making PPH as a factor in maternal mortality is a very serious problem that requires urgent attention.

Opinion: Why Nigeria’s Tech Ecosystem Shouldn’t Be Built Exclusively With Foreign Capital
Funding, people, startups
21st September 2018

El Dorado will be a tech ecosystem built by international and local investors in a sustainable manner creating win-win scenario for all parties alike.


TechCabal is a Big Cabal Media brand



Copyright © 2018
All rights reserved

Privacy & Terms