Rocket Internet’s online retailer, Jumia has announced a new round of investments amounting to EUR 120 million (149,591,400) from existing shareholders in a move to strengthen the company’s position in Africa’s e-commerce.The Rocket Internet stake held through the intermediate holding Bigfoot II decreased from 9.8% to 8.1%, but the LPV of this stake increased by EUR 15.0 million from EUR 20.8 million to EUR 35.8 million.
The Rocket Internet stake held through Africa Internet Group increased from 17.2% to 20.6% and the LPV of this stake increased by EUR 55.4 million from EUR 36.5 million to EUR 91.9 million.
This raise comes just weeks after Jumia’s competitor in Nigeria Konga raised around $40,000 from its existing investors, something that’s set to fule competition in Africa at a lightening speed.
In a statement, Jeremy Hodara, co-CEO of Africa Internet Group said: “We are very pleased to have been given this show of confidence, which acknowledges JUMIA’s success. We consider this a recognition of the huge potential of e-commerce in Africa and the strong momentum of JUMIA across the continent.”
In 2012, www.JUMIA.com.ng started in a garage in Lagos, Nigeria. Before long, the company had built up its own logistics infrastructure – an entire warehouse near the city and its own fleet of drivers capable of delivering products within a day in the surrounding area.
“For us, the key to success is to build trust. Our customers expect the same quality of service as anywhere else in the world. We have built up our own infrastructure to achieve this high level of service. Now, with these new investments, we will continue to grow rapidly and consolidate our leading position,” said Sacha Poignonnec, co-CEO of Africa Internet Group.
With its marketplace platform for third-party merchants, JUMIA is offering an entry point for many international brands who are looking to enter or grow their presence on the African continent.
JUMIA is owned by MTN, Millicom (Tigo) and Rocket Internet.