Yuuzoo says the partnership with Etisalat provides Nigerian SMEs with a broad-based new e-commerce platform.
Leveraging on over 24 million Etisalat subscribers, Yuuzoo says the platform will enable SME’s in Nigeria to access mobile and online consumers for their products.
In addition users of SME Arena can also enjoy the tribal social networks and games offered in the platform.
Under the plan, YuuZoo has bought over all contract rights for Etisalat from its franchisee, who signed an earlier agreement with Etisalat in November 2014.
The company says this move is in line with its strategy of dealing directly with powerful media and telecommunication partners in the world’s 10 most populous markets, whilst appointing franchisees for the remainder of the markets.
Rather than buying the contract rights from its franchisee, YuuZoo will issue shares equivalent to a value of $1.96M to the franchisee’s owner, the company said.
Thomas Zilliacus, Executive Chairman of YuuZoo, says: “Our strategy is to build partnerships with strong partners in the world’s largest markets, primarily in media and telecoms. Nigeria is one of the world’s 10 most populous markets. Nigeria is also the largest market in Africa, the fastest growing continent for mobile services. As such, we have bought over all rights to the contract with Etisalat from our UK franchise who signed an earlier agreement with Etisalat in November 2014.
“We believe the price YuuZoo is paying provides excellent value for YuuZoo and our shareholders. The revenue and profit potential in Nigeria alone is significant. This agreement with Etisalat Nigeria also opens the door for potential expansion to the 18 other markets in Africa and the Middle East, where Etisalat operates. SME Arena also is a blueprint that can be modified and offered to telcos around the world.”
Also commenting, James Sundram, CEO of YuuZoo, says, “This marks the culmination of almost a year of negotiations with Etisalat. The e-commerce market in Nigeria is young and booming. With Etisalat providing strong marketing support, the partnership will enable us to build a very strong position in e-commerce, social networking and games in Nigeria. We have a strong team on the ground in Nigeria, and are excited and very much look forward to this partnership.”