Africa Internet Group, the parent company of Jumia, Africa’s leading e-commerce platform, on Thursday announced a €300 million financing from MTN, Rocket Internet, AXA and Goldman Sachs.
The group said the new funding from investors would significantly strengthen the balance sheet of AIG to enable it leverage the significant growth of Jumia and to capitalize on the significant opportunities in Africa.
“This investment is a recognition of the success that Jumia has already achieved and provides us with a strategic flexibility to further support our efforts to offer the best shopping experience to our customers,” said founders and co-CEOs of Jumia and AIG, Sacha Poignonnec and Jeremy Hodara, said.
“We are delighted to welcome AXA and Goldman Sachs as new investors and are also grateful for the continued confidence from our existing shareholders. To us, it is a recognition of the quality of our operations across the African continent and an affirmation of the significant growth potential of Jumia.”
Jumia said it intends to use the funds to support its continued growth, and to execute on attractive development opportunities in Africa along with AIG’s other ecommerce platforms.
MTN Group Chief Digital Officer, Herman Singh, said the company was extremely encouraged by its partnership with Jumia, which built the business into one of the leading ecommerce platforms in Africa.
Mr. Singh said MTN believes that Jumia strongly reinforces its digital offering, adding that the company would continue to support the company with its knowledge of the market.
Jumia, AIG’s main subsidiary, is currently present in 11 African markets, providing the platform for local African businesses to sell products to the fast-growing base of African consumers in particular to the rapidly emerging middle class.