Rocket Internet’s Africa Internet Group Nabs $83M

The eCommerce startup scene in Africa just got a big push with a new $83 million funding for 10 eCommerce ventures, which are counted among the top in Africa.

The 10 startups, which are owned by Rocket Internet’s Africa Internet Group (AIG), include various ventures that provide service in the hotel (Jovago), fashion (Zando), employment (Everjobs), real estate (Lamudi) and transportation (EasyTaxi) industries, TechCrunch reported.

The funding round, which is being backed by Paris-based AXA Insurance, will be used by AIG to expand eCommerce services in the top-performing African economies.

“We have a solid eCommerce vertical across things like retail, travel, real estate … and cars. First, we’ll use the investment to strengthen … our existing businesses. Longer term, we’ll look at launching new African companies and services and entering new countries,” AIG CEO Sacha Poignonnec told TechCrunch.

In return, AIG is offering AXA an 8 percent equity stake in the company, with access to its growing network of companies. “AXA not only sees this as an opportunity to invest in a company that will bring financial returns, they also see us as a great partner to accelerate distribution of insurance products in Africa,” Poignonnec added.

The investment activity in top African eCommerce startups is being backed by a growing consumer appetite for products and faster delivery. With improved smartphone penetration and a fast-growing young consumer base, overall consumer spending in Africa is reportedly expected to hit $1 trillion in the next four years.

And with that, despite a slowing Chinese market and falling oil prices, Poignonnec is bullish on an upward growth in the market in the years to come. “Internet broadband and digital access will only improve across the continent. Many Fortune 500 companies we talk to are also realizing they need to make investments now to take advantage of digital consumer trends that will peak over the next five years,” he said.