Rocket Internet’s share price has dropped by over 25% in the last six months, and the stains are also rubbing off on Africa Internet Group (a subsidiary of the struggling German internet clone machine). More evidently as Jumia’s revenue fell 37 percent in the same period. But from the impending ashes of this current struggling Rocket Internet rises what we’d call “the new Jumia”. As it turns out, AIG is rebranding of all its ventures to Jumia in an African consolidation move.
The move will see startups under the AIG umbrella undergo some kind of rebranding. Henceforth you’d see the Hotel booking site Jovago become Jumia Travel, real estate site Lamudi to Jumia House, food ordering and delivery site HelloFood to Jumia Food. Rocket Internet’s car classifieds portal Carmudi to Jumia Cars while Vendito an OLX competitor into Jumia Deals and job matching site Everjobs to Jumia Jobs.
As it stands, this is as far as the rebranding goes. The businesses will still operate in the same vein as before and possibly retain its former staff.
Rocket Internet has been struggling to convince its investors, as its business is yet to be profitable and hence the need for readjustment so as to achieve the company’s short and long term objectives in Africa and globally.
It is believed that the move will boost Jumia’s marketing strategy and cover up lost ground; particularly as Jumia has been predominantly affected by the macroeconomics challenges that has largely resulted in recent economic downturn in Nigeria.
Rocket internet’s founder and CEO, Oliver Samwer said, “Jumia in Africa is billing out its market share in a difficult macro environment and we are very optimistic for this business in a very long life.”
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Nigerian startups raised $55.4m in Q1 2020; over 99% of which came from foreign sources. Find out more when you download the full report.