TechCabal Daily – Jumia’s losses slow to $47.4 million in Q1 2020

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FLUTTERWAVE, RENSOURCE & OPAY
14.05.2020

Good morning, and welcome to TC Daily. In today’s edition, Jumia’s Q1 results show that losses are slowing and that there might be a clear path to profitability. Helium Health is also trying to fund Nigeria’s underfunded health sector.

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ECOMMERCE

Jumia’s quest to become Africa’s largest ecommerce company has come under scrutiny in recent years. Despite a bright start and a lead up to a promising IPO, many observers seem to have lost patience with a strategy that sacrificed profits for growth.

But Jumia understands that the party is now over and has been tightening their business in the last two years or so. In Q1 2020, there are all the signs that Jumia is making all the right decisions to not only survive, but ultimately achieve their goal of ecomerce domination.

For Q1 2020, despite a pandemic, Jumia’s losses have slowed to $47.4 million. It is lower than losses from both the previous quarter ($69.2 million) and Q1 2019 ($49.4 million).

Although the company’s Merchandise Volume
is down, Abubakar Idris argues that Q1 2020 is quite the turnaround for Jumia.

HEALTHTECH

“A hospital is a business; now how do you start a business without funding?”

Nigeria’s health sector is underfunded. Years of government neglect has led to hospitals that only manage to stay provide the basic services.

In the private sector, private hospitals do not often raise funding from external sources. A survey by Helium Health says that 57% of private hospitals have never raised funding from external sources.

Helium Health is now looking to solve those problems, first by digitizing hospital records. It will then go a step further by providing credit facilities for healthcare providers.

Here’s how the Healthtech company hopes to achieve these big plans.

COVID-19

While Nigeria and Ghana have lifted lockdowns, South Africa will continue to enforce lockdowns till May 4th.

President Cyril Ramaphosa announced that “by the end of May, most of the country should be placed on alert level 3. Those with the highest (rate of infection) will remain on alert level 4”

The announcement comes despite calls from the business community for South Africa to relax the lockdown as the economy suffers. Read all about it here.

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MY LIFE IN TECH

There’s a lot that’s interesting about a person whose first language is ASL, was raised in the small town of Ilorin, Kwara state and landed a role at NASA.

Faith History was not always interested in computer/technology until a series of life events drove her back to gain digital skills that were pivotal in her career trajectory in digital advertising and strategy. Today, she is a strong advocate for developing and impacting digital literacy.

This is her non-tech life in tech story.

FUNDING

Novastar Ventures has closed its $108 million Novastar Ventures Africa Fund II (NVAF II).

Novastar Ventures’ first fund was limited to East Africa but the second fund will target both East and West Africa from its offices in Nairobi and Lagos.

Here’s all you need to know about the fund.

Nigerian financial service technology company OPay has joined Nigerians and the Government is rolling out a series of anti-pandemic and relief efforts.
As part of its #DoMore initiative, OPay made a donation of 40,000 medical face masks to the Lagos State Government.

BULLISH ON AFRICA

On May 15, 2020, TechCabal is holding a digital conference, themed Bullish on Africa, in partnership with Pariti. The event will speak to the future of Africa’s tech industry with optimism and strength and critical thinking about what it takes to get to a stronger industry from where we are today.

This digital conference will bring together experienced tech thinkers and doers from Africa and across the world including entrepreneurs and investors to speak about the opportunities they are looking at and to share their experiences about what the continent should be building and how to build strong, sustainable and profitable companies in a moment of crisis.

Confirmed speakers for the conference include Kola Aina, Founder, Ventures Platform; Andreata Muforo, Partner, TLcom TIDE Africa Fund; Benjamin Schmerler, Partner, SUNU Capital; Nisha Ligon, CEO, Ubongo; and Alain Nteff, CEO, Health Lane; among others.

Registration link is now live! click here to register.

That’s all for today,

Stay safe!
#flattenthecurve
– Olumuyiwa

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