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Jumia plans to raise over $100 million in secondary shares to boost stalled user growth

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Jumia delivery motor bikes

African e-commerce company Jumia is selling 20 million American depositary shares in the subsequent few weeks, TechCrunch has learned. The at-the-market deal goals to profit from strong results despite a volatile market.

Given Jumia’s share price of around $5.70 when the stock market opened Tuesday, the e-commerce company could potentially raise around $100 million through a brand new share offering. However, the ultimate amount will rely on the share price, which has since fallen to $4.90. The drop, from around $11 on Monday after a 200% gain in the past three months, may very well be attributed to shareholders reacting negatively to news of dilution, the impact of world carry trades, or each.

This isn’t the primary time Jumia has taken this approach. The e-tailer raised almost $600 million from secondary share sales between 2020 and 2021.

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CEO Francis Dufay, who’s making a secondary share sale for the primary time, told TechCrunch that Jumia is raising money this time to speed up its business, having made significant progress in cost management and efficiency.

“The new funding will be used to expand our supply chain network, specifically by improving logistics to reach smaller cities and expanding our overall network,” Dufay noted. “We also plan to invest in technology, with a focus on marketing and supplier technology, which we believe will significantly drive growth. In short, after some deep, fundamental, hard work on cost and efficiency, we believe it’s time to shift the focus toward growth and invest additional money so we can scale the company faster and achieve even more success.”

Crossing the two million mark

Specifically, these measures will improve Jumia’s money position, which currently stands at $92.8 million (including $45.1 million in money and money equivalents and $47.7 million in term deposits and other financial assets) compared to Q2 2024. latest financial reportFor comparison, the platform’s liquidity in the fourth quarter of 2023 amounted to $120.6 million, and in the primary quarter of 2024 – $101.5 million.

The funds raised can even be used for other purposes including customer acquisition, product assortment, maintaining supplies and adding more suppliers to the market offering.

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Jumia’s lively customer base has hovered around two million for several quarters. The number represents a 6.0% quarter-on-quarter increase compared to Q1 2024 and flat year-on-year growth between Q2 2023 and Q2 2024. “Our customer base is still relatively small, around two million active consumers per quarter, while we operate in markets with over 600 million people. So we can do a lot more in the customer base,” Dufay said.

Orders then rose 7% year-on-year to 4.8 million. Jumia attributes the growth to product diversification, one other area it plans to double down on with the capital raised.

However, despite the rise in orders, Jumia’s GMV and revenue fell 5% and 17% year-over-year to $170.1 million and $36.5 million, respectively. As with most of Jumia’s financial reports since recent management took over in Q4 2022, a recurring theme has been that the numbers typically highlight year-over-year improvement in constant currency, but fluctuate in dollar terms due to devaluation. For example, Jumia’s GMV in constant currency increased 35.0% year-over-year, while revenue increased 15%.

“The devaluation that occurred in our two largest potential markets, Egypt and Nigeria, at the end of the first quarter had a significant impact on our revenue quarter over quarter,” Dufay said. “However, we saw some signs of stabilization and a sharp narrowing of the spread between official and parallel market rates. More importantly, our ability to drive GMV growth in constant currency shows that our value proposition is working.”

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Turning to profitability, Jumia’s adjusted EBITDA loss, which excludes finance charges, narrowed 10% to $16.3 million — in line with an 8% year-on-year decline in its operating loss to $20.2 million — primarily driven by cost-cutting initiatives.

While Jumia has used each adjusted EBITDA and operating loss to measure losses and the trail to profitability for years, Dufay insisted on the decision that the 12-year-old e-commerce platform is more likely to report a loss before income tax from continuing operations, which incorporates financial costs corresponding to the impact of FX and the associated fee of repatriating money. The loss before income tax from continuing operations was $22.5 million, down 27% yr over yr.

“We have been emphasizing this KPI more in recent quarters due to currency volatility and related costs. Reporting the full picture is essential for companies exposed to such volatility. For example, Mercado Libre in Latin America also prefers to look at pre-tax loss rather than EBITDA,” the CEO said. “During their recent earnings call, they highlighted how currency volatility in Argentina affects financial costs. Therefore, focusing on pre-tax loss provides a more comprehensive picture when operating in multiple markets with currency fluctuations.”

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This article was originally published on : techcrunch.com

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Dustin Moskovitz, CEO of Asana

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Asana CEO Dustin Moskovitz

Dustin Moskovitz retires with Asana, a software company, which he founded in 2008.

Asana, task management platform, He announced his pension as part of a report on earnings within the fourth quarter of the corporateCNBC reported. Moskovitz informed the plaque that he intends to maneuver to the role of a chair when the brand new general director begins.

The company has collected over $ 450 million in financing the undertaking, with akin to G Squared, Founders Fund and 8VC, amongst others, before it took the audience in 2020. Before Asana, Moskovitz was a co -founder of Meta, before Facebook.

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TechCrunch contacted Asana to get more information and update this post once we retreat.

(Tagstranslatate) asana

This article was originally published on : techcrunch.com
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Tammy joins us to the startup ai ai startup cratopy as CEO

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Photo of Tammy H. Nam on a bridge

CreatorThe startup, which uses artificial intelligence to automate the creation of digital ads, has brought a brand new CEO: I’m.

We had previously been COO and CMO at the start-editor of Picsart, and earlier the general director of the Viki streamer. Techcrunch said via e -mail that Creatoropy is searching for an American director who knows how to scale early stage startups, cooperated with European founders (the product was first developed in Romania) and understands marketing technology.

“Fortunately, I will adjust this bill,” she said.

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He also joins us to the Creatopy board, and the previous CEO of Startup, Dan Oros, entered the advisory role.

The startup announced a series A $ 10 million and under the leadership of European VCS 3VC and Point Nine last 12 months. In an announcement, Partner 3VC Eva Arh described us as “one of the best operators I know.”

From February 2024 to February 2025, the company claims that revenues from the market and enterprise increased by 400%, with a big a part of this growth over the past six months. Customers are Astrazeneca, Nascar and The Economist.

“What is unusual in creatoropes – especially for a relatively unknown company – is our ability to acquire major business clients in demanding industries, such as pharmacists and banking,” he told us.

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She added that customers love this product “our intuitive interface, unique product capabilities and excellent customer service.” In fact, she suggested that because large language models develop into “ubiquitous”, the Creator is differentiated on the basis of “the ability to understand the needs of customers and satisfying-it can be ironically-quality value in addition to artificial intelligence.”

He also described the brand’s security as “the highest priority”, and marketing managers sent brand sets during the account configuration, and these sets be sure that each commercial generated by AI is consistent with their brand’s guidelines.

“Our artificial intelligence does not replace strategic thinking; It strengthens – she said. “Some of our clients have reported 10x or more efficiency, because we eliminate tedious, manual work consisting in generating a whole lot of AD varieties in sizes, formats, languages, etc.”

(Tagstotranslate) createopy

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Tesla is making progress to join the Rideshare industry

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Tesla is preparing to enter the Rideshare industry to compete with Uber and Lyft.


Tesla Elona Muska took a major step towards becoming a travel service, applying for a permission to transport in California.

Bloomberg informs that the newly obtained documents disclose Tesla’s application for permission to the transport card carrier from the UTITI Public Commission California Commission. This classification would allow Tesla to have and control the fleet of vehicles to offer driving services and compete with Uber, Lyft and Waymo.

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The permit application appears several months after Musk announced that Tesla will introduce without drivers in Austin in June, with plans to expand to California by the end of the 12 months. The application also appears when an electrical vehicle company (EV) feels a decrease in sales by publishing its first annual sales decline in over a decade.

The first quarter shows signs of delay in sale in key markets, akin to the USA and Europe. Since the important business of EV Tesla faces challenges, Musk has invested heavily in autonomous driving, robotics and artificial intelligence as key aspects of future growth.

In January, Musk he said Investors that the company will soon enter the system stuffed with independent handling (FSD).

“I am sure that this year we will slow down the FSD in California,” he said. “We just put your finger to the water, then a few fingers at the feet, then the foot, then the leg. We are looking for a level of safety, which is much above the average human driver. “

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Autonomous vehicles gain momentum, and Uber is preparing to launch autonomous services related to driving in cooperation with Waymo in Austin and Atlanta this 12 months. Tesla is applying for the same form of permit utilized by Waymo, the activities of Robotaksi Alphabet Inc ..

While Tesla has permission to test autonomous vehicles with a security driver in California, she has not made or received permission to test or implement with out a driver from the Motor Vehicles Department. However, in communication with California officials, Tesla mentioned details about driving licenses and coordination of drug tests, indicating that the company plans to initially use human drivers.


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This article was originally published on : www.blackenterprise.com
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