Despite the drop in revenues and all the other problems that Africa Internet Group (now Jumia Group) and it's major backer, Rocket Internet, are facing, the tech conglomerate has still managed to secure €50 million in investment from CDC Group, a development finance institution owned by the UK government.
“CDC’s investment in AIG means that we are backing a business that is playing a leading role in Africa’s growing ecommerce market,” said the CDC’s Managing Director for Equity Investments, Mark Pay. “The investment will help create thousands of jobs and allow many small businesses to access new markets previously closed to them.”
Giving his take on the new round of investment, Sacha Poignonnec, Co-CEO of Jumia said, “We are very glad to be partnering with CDC. Their proven experience in investing in Africa and their expertise on long-term development will be decisive in building a healthy ecosystem around Jumia, developing and accompanying more and more African businesses and entrepreneurs in this shift towards mobile and online. Today, Jumia already reaches 50 million people every month and there is no doubt CDC will be a crucial partner in extending that reach over the next months and years.”
This funding round is the latest in a number of recent investments that has seen Jumia Group, whilst till AIG, raise over $400 million in equity capital from a range of blue chip investors including French insurance giant AXA, Orange Digital Ventures, and global investment bank, Goldman Sachs.