Africa Roundup: Jumias post-IPO earnings, Gokadas $5.3M raise, Facebooks fake-news purge, Joe Montanas fintech investment

Jumia harboured its first post-IPO earnings call and braved a short-sell assault in May, with Wall Street showing confidence in the Pan-African e-commerce company.

On the numbers, key takeaways were that Jumia’s Gross Merchandise Value( GMV) — the total amount of goods exchanged over the period — grew by 58% to EUR2 40 million. Marketplace revenue germinated 102% to EUR1 6 million, and gross profits as percentages per of GMV grew by 6.5% in Q1 2019.

Overall, Jumia’s operating losings for the period dilated to EUR4 5.4 million from EUR3 4.3, and negative EBITDAincreased to EUR3 9.5 million from EUR3 0.2.

So the startup’s still losing money — read the big losings reported in the IPO filing — but is improving its ability to earn.

CEO Sacha Poignonnec also shared a longer-term revenue strategy on Jumia’s Q1 earnings announce. The startup plans to convert its JumiaPay and Jumia Logistics capabilities to standalone business across Africa.

Founded in Lagos in 2012, the company currently controls severals online verticals in 14 African countries — from B2C buyer retail to travel bookings.

For Jumia, going public has been an up and down affair. After becoming the first tech startup operating in Africa to schedule on a major exchange( the NYSE in April ), the company ascertained its share rise 70% after schedule on the NYSE in April at $14.50.

Then in May, Jumia’s stock plummeted when it is a matter under assault from a short-seller, Andrew Left, who accused the company of fraud. On the earnings call the startup’s CEO responded to the short-seller claims saying,” Jumia stands by our prospectus and audited financials…and will not be distracted by all the persons who look…to profit at our expenditure .” Poignonnec later took to media and refuted declares as” grocery rumors rather than facts .”

Citibank analyst Andrew Howell published his own response, much of it discrediting Citron Research.

Overall, Wall street seemed confident in Jumia’s post-IPO results and outreach, with Raymond James and Berenberg upgrading their Jumia stock recommendations to buy-equivalent ratings. Jumia’s stock has remained stable since, closing at $25.81 Monday.

DHL fetches Africa eShop to 20 a number of countries in a competitive nod to Jumia

When it comes to e-commerce in Africa, Jumia may face stiffer rivalry from DHL. The ship monstrou teamed up with MallforAfrica to expand its Africa eShop app to 20 countries in May.

DHL went live with the digital retail app in April, drawing more than 200 U.S. and U.K. marketers — from Neiman Marcus to Carters — online to African consumers.

Africa eShop controls working startup’s white-label fulfillment service, Link Commerce.

There’s a competitive e-commerce scenario brewing between the two scaffolds. DHL Africa eShop touts itself as “Africa’s Largest Online Shopping Platform.” Jumia said, “We believe that our scaffold is the largest e-commerce marketplace in Africa, ” in its SEC F-1 filing .

DHL’s partner for the brand-new app, MallforAfrica, produces experience collaborating with a number of big-name retailers, including Macy’s and Best Buy. MFA’s payment and give structure acts as a digital broker and logistics manager for big-name retailers to sell goods in Africa.

As for the global e-commerce calls, Alibaba has talked about Africa expansion, but for the moment has not entered in full.

Amazon offers limited e-commerce marketings on the continent , but more notably, has started offering AWS works in Africa .

With Jumia’s commitment to offer its logistics and pays capabilities as works, DHL and MallforAfrica could be on a footing to compete with Jumia. All three could also find themselves either participating( or working) with big-hearted e-commerce calls participating Africa.

For the moment, DHL’s Africa eShop expansion forms added hand-picked on overlapping commodity lists with Jumia, while give African buyers more rate rivalry in the operating people it shares with Jumia. These currently stand at 10: South africans, Kenya, Nigeria, Tanzania, Cameroon, Uganda, Ivory Coast, Rwanda, Senegal and Ghana.

Nigeria’s Gokada promotes $5.3 M round for its motorcycle ride-hail biz

There’s been a lot of busines push in Africa’s motorcycle ride-hail space over the last year-plus. Uber began offering a two-wheel transit option in East Africa in 2018, around the same time Bolt( previously Taxify) started motorcycle taxi serving in Kenya.

Uganda-based motorcycle ride-hail company SafeBoda moved into Kenya in 2018 and last month grew a Series B round of an undisclosed extent on proposesto further expand into in East Africa and Nigeria.

In Lagos, there’s already motorcycle ride-hail firm Gokada, which raised a $5.3 million Series A round in May.

Gokadahas trained and on-boarded more than 1,000 motorcycles and their captains on its app that connects commuters to moto-taxis and DOT-approved helmets.

The startup has completed virtually 1 million moves since it was co-founded in 2018 by Fahim Saleh — a Bangladeshi entrepreneur. Gokada will use the financing to increase its fleet and journey magnitude, while developing a network to offer goods and services to its motorists, Saleh told TechCrunch in this exclusive.

Gokada is different to other ride-hail projects in that it doesn’t split fare revenue with drivers. Gokada charges moves a flat-fee of 3,000 Nigerian Naira a daytime( around$ 8) to work on their scaffold. The firm gapes to generate a larger share of its revenue from building a commercial-grade network around its operator community.

More American plays luminaries are getting involved in African tech. Serena Williams invested in Andela, NBA star Andre Iguodala participated Jumia’s board and, in May, NFL hall-of-famer Joe Montana invested in African fintech startup Chipper Cash .

The Africa focused no-fee, cross-border payment startup collected a $2.4 million grain round led by Deciens Capital.

The payments firm also persuaded 500 Startups and Liquid 2 Speculations — co-founded by Joe Montana — to join the round.

Chipper Cash’s Ugandan chief executive, Ham Serunjogi, sloped the U.S. football fiction directly.

Based in San Francisco — with departments in Ghana and Nairobi — Chipper Cash has managed 250,000 cross-border, P2P deals for more than 70,000 active customers, according to Serunjogi.

In conjunction with the grain round, Chipper Cash is launching Chipper Checkout: a merchant-focused, C2B mobile pays product.

This side of the startup’s offerings isn’t free, and Chipper Cash will use income from Chipper Checkout to support its no-fee, Africa portable fund business.

Chipper Cash will expand beyond its current operations in Ghana, Kenya, Rwanda, Tanzania and Uganda within the next 12 months.

Facebook’s latest detail oust revelations Africa’s misinformation problem

Finally, in May, Facebook purged a system of hundreds of pages, groups and Instagram accounts it labeled as develop “coordinated inauthentic behavior” toward Africa.

The activity originated in Israel and was largely targeted toward Nigeria, Senegal, Togo, Angola, Niger and Tunisia.

It was mostly government in mood and chiefly paid for by Archimedes Group, a global government consulting firm, Facebook said.

The affair foreground a motif of fake information on social media pulpits rearing its brain in Africa. Cambridge Analytica, backed by U.S. big-data billionaire Robert Mercer, was found to have been involved in elections in Kenya and Nigeria before its controversial capacity sending pro-Brexit and pro-Trump online activity in 2016. Facebook later censored Cambridge Analytica from its platform.

Social media-driven fake news — primarily on Facebook and WhatsApp — became such an issue in Kenya’s 2017 referendums the country’s parliament passed a money in 2018, with specific punitive measures, to combat it.

Facebook has prioritized rise in Africa and grown Africa consumers to more than 200 million and Facebook-owned chat-tool, WhatsApp, is the most downloaded messenger app on the continent.

But Facebook’s recent Africa account purge proves when Facebook walks, so too does its roster of pros and cons, including the ability of world performers to use it for nefarious applies in regional settings.

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