Daily's news reports that Jumia is flushing with funds
In the dynamic world of African business and technology, several significant developments have taken place in recent times.
Planet42, a South African car rental company, has secured a $10 million debt funding to expand its operations internationally. With over 2,000 cars rented to end users, the company is poised for growth. Meanwhile, in the car sharing and rental services sector, Africa's cumulative revenue projection for 2020 was $1.7 billion, and the market was projected to reach $447 million by the end of the year, growing at an annual rate of 20.4%.
However, not all news is positive. The Lagos state government's ban on commercial motorcycles has had multifaceted implications, ending the business operations of Gokada, MAXNg, and ORide. The ban's effects are yet to be fully understood in the ride-hailing services industry across Africa.
In the e-commerce sector, Jumia, a Pan-African company, raised $243.2 million by selling 7,969,984 ADR shares at an average price of $30.51 per ADS in Q3 2020. Despite this, the company has reported losses of $132.5 million in the last three quarters. Jumia's Q3 2020 financial report indicates that the company is focusing on groceries and everyday household items.
Interestingly, beyond grants and impact investments, there's a growing interest in Africa from sources beyond the traditional.
In the realm of technology, TStv, a pay-TV provider, has raised several million euros over the past few years to expand its activities in Africa. The company sells its decoders through dealers in Abuja and Ogoja, and does not have subscription bouquets. A 30-day subscription for a channel on TStv costs between ₦90 ($0.24) and ₦150 ($0.34) per day, depending on the channel.
Elsewhere, Africa's first car sharing startup, Locomute, raised $5 million in 2016. However, details about the first launch of TStv in Africa are not provided in the given text.
In the music industry, something interesting is happening in Nigerian music-tech. Unfortunately, specific details about this development are not available.
Lastly, as Foreign Exchange (FX) woes continue, Nigeria's Central Bank is focusing on remittances. An individual named Wade was unable to buy a car in 2020 due to a bank loan rejection, highlighting the challenges faced by individuals in accessing credit.
These developments paint a picture of a continent brimming with potential and challenges, a testament to the resilience and innovation of African businesses and technology.
