Nigerian Online Retail is Booming!

Nigeria Online Retail is Booming!

There is an emerging market of online shoppers in Nigeria. Despite negative stereotypes held globally about the economy some entrepreneurs see promise.

Nigeria has a large population that is expected to grow to over 400 million people by 2050: a 4x increase. However, it lacks critical infrastructure: an opportunity?

There is no functioning postal service in the country. So it has been a difficult market to crack for conventional online retailers like Amazon.

Nigeria also lacks access to normal banking and payment systems, like PayPal. Enter Konga and Jumia.

These companies promise delivery of products within 24 hours. This is a seemingly epic task. Yet both companies are living up to the promise.

Jumia has secured over US$60 million dollars in seed and series A funding. It has subsequently grown from 3 to over 500 employees.

Nigerian Online Retail is Booming! 1

The company brings a secure online shopping experience to Nigerians. Business is booming.

Konga has raised similar investment capital, fostering similar growth.

This growth has not escaped the attention of media giants like Facebook, who recently sent a delegation to Lagos to strengthen relations with the companies. Facebook has over twelve million users in Nigeria.

These two companies represent the larger players in the space locally. But there are other more specialised entrants making a splash.

Gloo.ng is achieving success focusing on supermarket delivery. In the last year the company has experienced 4x growth and expanded to a 20,000 sq foot facility.

These companies are also exploring the use of drone technology as a way to service the growing customer base and rapidly increasing population.

This technology could prove a cost effective and efficient way to realise delivery in the absence of adequate transportation infrastructure.

This would be similar to how the continent skipped fixed line internet and moved straight to mobile phone technology, as the basis for connectivity.

Africa is booming. This is real economic growth. There should be no doubt. At iceCUBED we’re excited to be part of this.

We believe Bitcoin and Litecoin will serve an important function in high growth economies like Nigeria.

We look forward to working with companies across Africa to make this happen.

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