Connect with us

Technology

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

Published

on

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.

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.

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.”

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.”

This article was originally published on : techcrunch.com
Continue Reading
Advertisement
Click to comment

Leave a Reply

Your email address will not be published. Required fields are marked *

Technology

SpaceX wants to test refueling spacecraft in space early next year

Published

on

By

SpaceX will attempt to transfer fuel from one orbiting spacecraft to one other as early as March next year, a technical milestone that may pave the way in which for an uncrewed demonstration of the spacecraft on the Moon, a NASA official said this week.

Much has been said about Starship’s potential to transform the industrial space industry, but NASA can also be losing hope that the vehicle will return humans to the Moon under the Artemis program. The space agency has awarded the corporate a $4.05 billion contract for 2 human Starship vehicles, with the upper stage (also called Starship) landing astronauts on the lunar surface for the primary time because the Apollo era. A crewed landing is currently scheduled for September 2026.

Kent Chojnacki, deputy program manager for NASA’s Human Landing System (HLS) program, provided more details on how closely the agency will work with the space company on this critical mission in an interview with Spaceflight Now. It will come as no surprise that NASA is paying close attention to the Starship test campaign, which has seen five launches thus far.

SpaceX made history in its latest test on Oct. 13 when it first managed to catch a super-heavy rocket booster in mid-air using “sticks” attached to the launch tower.

“Every time it comes to (launch), we learn a lot,” Chojnacki said.

Chojnacki’s work history includes quite a few roles in the Space Launch System (SLS) program, which oversees the event of the large rocket of the identical name being built by a handful of traditional space-first aircraft. The first SLS rocket launched the Artemis I mission in December 2023, and future rockets will launch additional missions under the Artemis program. However, no a part of the rocket is reusable, which is why NASA spends greater than $2 billion on each launch vehicle.

The first contracts under the SLS program were awarded over ten years ago as a part of the so-called a cost-plus model, meaning NASA pays a base amount plus expenses. (This variety of contract has been heavily criticized for encouraging long development schedules and high expenses.) In contrast, HLS contracts are “fixed price” – so SpaceX receives a one-time payment of $2.99 ​​billion, provided certain milestones are met.

Chojnacki said NASA has taken very different approaches to the HLS and SLS programs, even outside of the contracting model.

“SLS was a very traditional NASA program. NASA defined a very stringent set of requirements and dictated the fuel supplies, dictated everything to the various elements. They flowed downwards. These were cost-effective programs where aerospace companies responded and we worked in a very traditional way,” he said. “Moving to HLS, we’re doing a whole lot of moving parts without delay. Currently, SpaceX’s first landing contract includes 27 system requirements. Twenty-seven and we tried to be as relaxed as possible.

Under the SpaceX contract, they have to pass mandatory design reviews, but SpaceX may offer additional milestones as a part of the payment. One of the necessities required by SpaceX is an indication of ship-to-ship propellant transfer. These tests are scheduled to start around March 2025 and end in the summer, Chojnacki said.

“This could be the primary time this has been demonstrated on this scale, so it’s an enormous constructing block. And when you try this, you have really opened up the door to moving huge amounts of cargo and charge beyond the globe of the Earth. If you manage to have a spacecraft with a propellant unit, that can be the next step towards uncrewed demonstrations.

In addition to testing, Starship’s next major review can be the Critical Design Review (CDR) in summer 2025, when NASA will certify that the corporate has met all 27 system requirements. Chojnacki said NASA astronauts also meet with SpaceX once a month to provide information concerning the interior of Starship. The company is constructing mock-ups of the crew cabin, including the sleeping area and laboratory, in Boca Chica. NASA anticipates receiving a design update this month before it during next year’s CDR.

That’s not the one place NASA shared its input: it also provided feedback on some facets of the rocket’s design, similar to the vehicle’s cryogenic components, and in addition performed some tests on thermal plates that help keep the temperature of cryogenic fuels low.

If all goes according to plan, SpaceX will send astronauts to the Moon in September 2026.

“It’s definitely a date we’re working towards. We haven’t any known roadblocks. We have some things that need to be demonstrated for the primary time and we’ve a plan on how to exhibit them.

This article was originally published on : techcrunch.com
Continue Reading

Technology

Microsoft and A16Z are putting aside their differences and joining hands in protest against artificial intelligence regulations

Published

on

By

Image of a computer, phone and clock on a desk tied in red tape.

The two biggest forces in two deeply intertwined tech ecosystems – large incumbents and startups – have taken a break from counting money and together they demand this from the federal government to stop even considering regulations that might affect their financial interests or, as they prefer to call it, innovation.

“Our two companies may not agree on everything, but it’s not about our differences,” writes this group with very different perspectives and interests: A16Z founders, partners Marc Andreessen and Ben Horowitz, and Microsoft CEO Satya Nadella and president/director legal affairs Brad Kowal. A very cross-sectional gathering, representing each big business and big money.

But they are supposedly taking care of little boys. That is, all the businesses that may be impacted by this latest try to abuse the regulations: SB 1047.

Imagine being charged a fee for improperly disclosing an open model! A16Z General Partner Anjney Midha he called it a “regressive tax” on startups and a “blatant regulatory capture” by Big Tech firms that, unlike Midha and his impoverished colleagues, could afford the lawyers needed to comply with the regulations.

Except that was all disinformation spread by Andreessen Horowitz and other wealthy interests who actually stood to suffer as supporters of billion-dollar enterprises. In fact, small models and startups would only be barely affected since the proposed law specifically protected them.

It’s strange that the identical form of targeted carve-out for “Little Tech” that Horowitz and Andreessen routinely advocate for was distorted and minimized by the lobbying campaign they and others waged against SB 1047. (In an interview with the bill’s sponsor , California State Senator Scott Wiener talked about this whole thing recently on Disrupt.)

This bill had its problems, but its opposition greatly exaggerated compliance costs and didn’t significantly substantiate claims that it will chill or burden startups.

It’s a part of a longtime pattern in which Big Tech – to which, despite their stance, Andreessen and Horowitz are closely related – operates on the state level, where it could possibly win (as with SB 1047), while asking for federal solutions that it knows will won’t ever come, or which can have no teeth because of partisan bickering and congressional ineptitude on technical issues.

This joint statement of “political opportunity” is the second a part of the sport: After torpedoing SB 1047, they will say they did it solely to support federal policy. Never mind that we’re still waiting for a federal privacy law that tech firms have been pushing for a decade while fighting state laws.

What policies do they support? “A different responsible market approach”, in other words: down with our money, Uncle Sam.

Regulations needs to be based on a “science-based and standards-based approach, recognizing regulatory frameworks that focus on the use and misuse of technology” and should “focus on the risk of bad actors exploiting artificial intelligence.” This signifies that we must always not introduce proactive regulation, but quite reactive penalties when criminals use unregulated products for criminal purposes. This approach has worked great in this whole FTX situation, so I understand why they support it.

“The regulation should only be implemented if the benefits outweigh the costs.” It would take 1000’s of words to clarify all of the ways this idea expressed in this context is funny. But they are principally suggesting that the fox needs to be included on the henhouse planning committee.

Regulators should “allow developers and startups the flexibility to choose AI models to use wherever they build solutions, and not tilt the playing field in favor of any one platform.” This suggests that there may be some agenda requiring permission to make use of one model or one other. Since this is just not the case, it’s a straw man.

Here is a lengthy quote that I have to quote in full:

The right to education: Copyright goals to advertise the progress of science and the applied arts by extending protection to publishers and authors to encourage them to make recent works and knowledge available to the general public, but not on the expense of society’s right to learn from those works. Copyright law mustn’t be co-opted to suggest that machines needs to be prevented from using data – the premise of artificial intelligence – to learn in the identical way as humans. Unprotected knowledge and facts, whether or not contained in protected subject material, should remain free and accessible.

To be clear, the clear statement here is that software operated by billion-dollar corporations has the “right” to access any data since it should give you the chance to learn from it “in the same way as humans.”

First of all, no. These systems are not like people; they generate data in their training data that mimics human activity. These are complex statistical projection programs with a natural language interface. They haven’t any more “right” to any document or fact than Excel.

Second, the concept that “facts” – by which they mean “intellectual property” – are the one thing these systems are interested in, and that some type of fact-gathering cabal is working to forestall them, is an artificial narrative we have seen before. Perplexity made the “facts belong to everyone” argument in its public response to a lawsuit alleging systematic content theft, and its CEO Aravind Srinivas repeated that mistake to me on stage at Disrupt, as in the event that they were being sued for knowing tidbits just like the Earth’s distance from the Moon.

While this is just not the place to totally discuss this particular straw man argument, let me simply indicate that while facts are indeed free agents, there are real costs to how they are created – say, through original reporting and scientific research. This is why copyright and patent systems exist: not to forestall the wide sharing and use of mental property, but to encourage its creation by ensuring that it could possibly be assigned real value.

Copyright law is much from perfect and is more likely to be abused as often as used. However, this is just not “co-opted to suggest that machines should be prevented from using data” – it’s used to be sure that bad actors don’t bypass the worth systems we’ve got built around mental property.

This is a fairly clear query: let’s allow the systems we own, operate and take advantage of to freely use the worthwhile work of others without compensation. To be fair, this part is “in the same way as people” because people design, run and implement these systems, and these people don’t desire to pay for something they do not have to, and they don’t desire to. I don’t desire regulations to alter that .

There are many other recommendations in this small policy document, which were little question covered in greater detail in the versions sent on to lawmakers and regulators through official lobbying channels.

Some of the ideas are undoubtedly good, if slightly selfish: “fund digital literacy programs that help people understand how to use artificial intelligence tools to create and access information.” Good! Of course, the authors invest heavily in these tools. Support “Open Data Commons – collections of accessible data managed in the public interest.” Great! “Examine procurement practices to enable more startups to sell technology to the government.” Excellent!

But these more general, positive recommendations are something the industry sees yearly: invest in public resources and speed up government processes. These tasty but irrelevant suggestions are merely tools for the more vital ones I described above.

Ben Horowitz, Brad Smith, Marc Andreessen and Satya Nadella want the federal government to step back from regulating this lucrative recent development, let industry resolve which regulations are value compromising, and invalidate copyright laws in a way that kind of acts as a blanket reprieve for illegal or unethical practices that many imagine have enabled the rapid development of artificial intelligence. These are principles that are vital to them, whether children are acquiring digital skills or not.

This article was originally published on : techcrunch.com
Continue Reading

Technology

Nigerian technology company Moniepoint secures $110 million investment

Published

on

By


Moniepoint, a Nigerian fintech company that serves thousands and thousands of entrepreneurs across Africa, has secured $110 million in financing for expand your corporation. The financing got here from 4 entities: London Development Partners International and Lightrock, which had previously invested within the company; The recent investors are the Google African Investment Fund and Verod Capital.

Moniepoint – formerly called TeamApt –was named fastest growing fintech company in accordance with Financial Times for 2 years.

The company provides quite a lot of financial services, including bank accounts, loans and business management services. It processes over 800 million transactions monthly value over PLN 7 billion.

Moniepointe co-founder Tosin Eniolorunda says the brand new investor will provide financing help the company improve customer experience.

“Our mission is to assist our customers solve their challenges by making our platform more progressive, transparent and secure. Proceeds from this fundraising will speed up our efforts towards financial inclusion and supporting Africa’s entrepreneurial potential. I need to sincerely thank all the Moniepoint team for making this achievement possible, ” – said Eniolorunda in a press release shared Afrotech.

Adefolarin Ogunsanya, Partner at Development Partners International, also expressed his excitement to contribute to the event of Moniepoint.

“We are delighted to steer this investment round in Moniepoint, one of the vital exciting and fastest growing corporations in Africa. As a profitable company led by a wonderful management team with a transparent strategic vision, Moniepoint is well positioned to proceed its impressive growth trajectory while ensuring financial inclusion for vulnerable businesses and individuals across Africa, Afrotech reports.

Moniepoint officials say they are going to proceed to prioritize Nigeria, however the company plans to expand into other African countries. The company is currently assessing these markets to evaluate how effectively it may well operate meet customer needs.

The successful fintech company has previously received support from QED Investors, British International Investment (BII) and Endeavor Catalyst. Since its founding in 2015, the company has raised over $180 million.


This article was originally published on : www.blackenterprise.com
Continue Reading
Advertisement

OUR NEWSLETTER

Subscribe Us To Receive Our Latest News Directly In Your Inbox!

We don’t spam! Read our privacy policy for more info.

Trending