London-based hedge fund, Summit Brothers which invests in rapidly growing companies has invested 26 million euros (N5.2bn) in the Jumia brand across Nigeria, Egypt and Morroco, with new funds tailored to setting up more ventures across the African sub-region.
“We seek to invest in companies around the world that build long-term value,” said Scott Collins, MD and head of the Summit Partners London office, in a statement. “Jumia has established itself as a fast-growing company early on, and we are pleased to partner with its management team.”
Commenting on the development, Jumia co-founders, Raphael Afaedor and Tunde Kehinde, said, “As Nigeria’s no.1 online retailer, jumia.com.ng plays big within the Nigerian market, with a vision to being the solution to online retail in sub-Saharan Africa.
“As a place for direct retail shopping online, we implement 24-hour availability, a local and global reach, with the ability to interact and provide custom information and ordering, as well as multimedia prospects speaking about their brand Jumia Nigeria.\
“It is a no brainer for these investors to want to invest in this market, with its growing middle class and an increasing demand for goods. We have risen to become the 5th largest local content site (according to web research site, Alexa.com), with our order volumes increased significantly we are the largest e-commerce player in this market”.