Kinnevik was paid less than $1 million for Konga sell-off?

Kinnevik was paid less than $1 million for Konga sell-off?

Swedish tech investor and former part owner of Konga said received SEK3 million for disposals between in the fourth quarter of last year.

This data was shared in the company’s full-year financial results released in Stockholm, Sweden earlier today

This means that it was referring to Konga, a Nigerian eCommerce company that how has now been sold to Zinox Group, a local IT firm with interest in eCommerce.

PageOne.ng is making this assumption because Kinnevik and Naspers (former co-owner of Konga) agreed to terms of sales with Zinox Group towards the end of the quarter (fourth quarter).

The sale of Konga must have been a huge loss to Kinnevik. The company disclosed that it made a net loss of $122 million from sales of underperforming companies it invested in, this figure includes Konga and other foreign startups it has sold off during the course of the year.

It could be recalled that last week, there were rumours (largely unconfirmed) that Kinnevik and Naspers sold Konga for a paltry $10 million. Should the latest data released by Kinnevik is anything to go by, the actual value the company was sold for could be far less than the figure bandied around in the media.

Kinnevik still has a stake in Iroko, a mobile entertainment and TV company. According to its disclosure, it has not invested any amount in the company since 2016 when it invested $2 million in the company.

Naspers, the second former owner of Konga has continued to reduce its exposure to Nigerian and other African startups that were underperforming. Earlier this week, OLX.com, a classified website with operations across several African countries closed its shop in Lagos after several years of struggling to stay afloat.