Nigerian e-commerce startup Jumia has secured EUR120 million (US$149.5 million) in funding, with the company promising accelerated growth on the back of the new investment.
The new round of funding was made by existing stakeholders, with the intention of enabling the online shopping portal to further scale, and consolidate its dominant market position in West Africa.
Jumia said the new investment brings the company’s post-money valuation to EUR445 million (US$554 million).
“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,” said Jeremy Hodara, co-chief executive officer (CEO) of Africa Internet Group (AIG), which Jumia falls under.
“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,” Sacha Poignonnec, co-CEO of AIG added.
Launched in 2012 in Lagos, Nigeria, Jumia has since developed its own logistics infrastructure – including warehouse and fleet of drivers fulfilling the company’s one-day deliveries -, and has expanded to 10 other African markets; with the company claiming to now be the largest e-commerce company on the African continent.