Ecommerce platform Jumia has announced it has raised about US$150 million additional funding from its existing shareholders. The company in a statement said the additional fund would be used to strengthen its position as the leading online retailer in Africa.
With the latest announcement, Jumia said its post-money valuation has increased from about US$265 million to over US$554 million.
Commenting on the additional investment, Jeremy Hodara, co-CEO of Africa Internet Group said it shows ecommerce has huge potentials in Africa.
“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,” Hodara said.
Jumia was launched in 2012 in Lagos, Nigeria and following its success, it has expanded to more African countries including Ivory Coast and Egypt.
“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.
MTN, one of the owners of AIG believes Africa is better placed to drive the next stage of growth in global e-commerce.
Pieter Verkade, MTN Group Chief Commercial Officer said: “Working with our strategic partners, we have the best possible set-up to accelerate the growth of online businesses in Africa and bring even more exciting e-commerce services to our customers.”