”Although global e-retailer Amazon celebrated its 20th anniversary in July, e-commerce companies in Africa are only now beginning to mark and / or accelerate their presence in the marketplace.” – Sumesh Rahavendra, Head of Marketing for DHL Express Sub Saharan Africa
So by now we have all probably heard that Konga raised $40 Million to fund the companies rapid expansion across the continent. This round of funding brought the total money raised by the Nigerian Online Retail Startup to $78.5M over four rounds! With this funding round they have surpassed competitor Jumias total money raised ($61M), as the battle for e-commerce dominance in Africa heats up.
A recent report by McKinsey & Company revealed that, e-commerce could account for 10 percent of retail sales in Africa’s largest economies by 2025, and nowhere is this more evident than in Nigeria.
We all know about Jumia and Konga, but what we probably don’t know is that there are dozens of e-retailers in Nigeria, selling everything from books to clothing to even groceries. A country like Nigeria has over 10 fashion e-retailers in Lagos alone!
As internet penetration increases on the continent, expect this number to continually rise. Jumia and Konga are clearly the market leaders, but they can be dethroned at anytime, it is the wild wild west right now! I expect there to be massive consolidation in the coming years, the big players will start to buy up smaller retailers in order to expand their market share.
So if you are one of the smaller guys, build your customer base and improve your service, even if you don’t grow to the level of Konga or Jumia, you might grow enough so that one of these guys would hand you a check (ie cheque for my ‘Queens english’ readers :)) to retire early, and that is not a bad deal either!
To get a full list of African e-retailers, visit our Startup Directory. Below is just a small sample of some of the ones we have discovered;