JUMIA has received a new round of funding amounting to €120 million ( about $150 million USD) from its existing shareholders MTN, Million and Rocket Internet through the Africa Internet Group ( AIG) to further enhance the company's position as the leading online retailer in Africa.
With this latest cash injection, it brings the company's total investment to date €182 million ( about $227 million) and its post-money valuation has raised from €212.5 million ( i.e $265 million to 554 million).
The new capital was expected, since its zero balance cash position as t June 2014 raised questions about the company's financial strength to develop the e-commerce operation in what is gradually becoming a highly competitive market. But despite its inability to turn a profit even though it made $26 million in revenues during H1 2014, the company's shareholders appear to be confident that it would continue to develop and consolidate its market leading position.
''Working with our strategic partners, we have the best possible set-up to advance the growth of online businesses in Africa and bring even more interesting e-commerce services to our customers. MTN believes that Africa is better placed to drive the next stage of growth in global e-commerce,'' said Pieter Verkade, MTN Group Chief Commercial Officer in a statement.
While it plans to continue delivering the widest range of products, the company's marketplace platform for third-party merchants is expected to give an entry point for many international brands looking to increase their presence on the African continent.
Now, with operations in 10 countries, JUMIA is arguably the largest e-commerce company in Africa and has more than doubled the amount of sales processed through its mobile and desktop applications in 2014.
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