South African smartphone brand, AG Mobile, has walked away from the Mobile Business. In simple term, the company has liquidated.
This should come as a bit of a shock owing to the fact that the company launched in Nigeria sometime in January 2016. And since inception, the brand has tried creating a market for itself.
However, it seems as though, things didn’t go as planned. Commenting on the reason for the company liquidation, AG founder and CEO, Anthony Goodman, confirmed to Fin24 stating thus:
“The reason the business was liquidated was because of cash funding. We grew too big and the ability to manage and maintain a very high growth capital intensive business with exceptionally owner-risk borrowing terms impacted the business”.
Founded in 2007 in South Africa as AG cellular, the brand transitioned to being AG Mobile in 2014. The brand basically had it’s market share around Botswana, Mozambique, Lesotho, Namibia, Nigeria, South Africa, Swaziland, Zambia, and Zimbabwe.
Sharing more on the reason for liquidating, Goodman explained that the exchange rate fluctuation had a terrible impact on the company.
Just when we though we had more OEMs operating in Nigeria thus giving room for more competition, AG Mobile is backing down.
In another news, efritin (An online classified website which recently launched in Nigeria) based on information reaching me, is also closing it’s doors to the Nigerian market. More news on that as it unfolds.