Despite a global downturn in funding, Partech Africa, a leading venture capital fund, has successfully closed its second Africa-focused fund, "Partech II," at a record $300 million. This fund, which is double the size of Partech's inaugural fund of $143 million in 2018, is set to invest in a diverse range of African startups. The fund will target seed to Series C rounds, with investments ranging from $1 million to $15 million. This achievement comes amidst a 36% drop in funding for Africa last year, with over half of investors retreating from African startups. Partech's successful close, a year after its initial close at $263 million, was made possible by contributions from US and Middle East pension funds, sovereign funds, and new strategic investors, including Africa Reinsurance Corporation and Dubai Future District Fund (DFDF). Cyril Collon, General Partner at Partech, expressed gratitude for the continued support from investors, many of whom reinvested and even doubled their commitment. He also welcomed the new strategic investors from the US, the Middle East, and Africa, some of whom are making their first foray into African tech. Partech, which was among the most active venture stage investors in Africa last year, has already invested in three startups with its second fund, including South African payment startup Revio, and two undisclosed startups in Egypt and Senegal. As part of its expansion strategy, Partech is set to open a new office in Lagos, which houses a third of its portfolio. "With our presence in Dakar, Nairobi, Dubai and now Lagos, we are strengthening our support on the ground for entrepreneurs," said Tidjane Deme, general partner at Partech. Despite the two-year decline in funding, African startups managed to raise $3.2 billion in 2023.

In January 2024, Jumia, a leading African e-commerce platform, initiated layoffs in Kenya and other African markets. This move followed the company's exit from its food delivery venture, Jumia Food, a month prior. The exact number of employees impacted by this decision remains undisclosed. An anonymous Jumia employee voiced their concerns on Glassdoor, stating that while the layoffs were announced, no specifics were given regarding who would be affected. This round of layoffs follows a previous downsizing in 2023, where Jumia let go of 900 employees in a bid to reduce costs and steer the company towards profitability. Some employees were reassigned within the company, as reported by TechCabal. Jumia, in an email to TechCabal, explained that the layoffs were part of a strategic refocus on activities and projects that support their path to profitability. The company remains optimistic about the future of e-commerce in Kenya and Africa. In 2023, Jumia began phasing out its food delivery business, ceasing operations in Ghana, Senegal, and Egypt. By the end of the year, the company had completely exited the business, citing unsustainable competition with more aggressive players. Under the stewardship of Francis Dufay, Jumia has prioritized cost discipline and operational cost reduction. The company's Q4 2023 report revealed a decrease in operational losses to $4.5 million for the quarter, along with a reduction in advertising expenses. Despite challenges such as inflation and currency devaluation in key markets, Jumia remains hopeful that cost discipline and positive trends in other markets will lead to profitability.

n a bold pivot to sharpen its focus, Jumia, Africa's leading e-commerce titan, has announced the discontinuation of its culinary courier, Jumia Food, in several nations, including Nigeria, Kenya, Morocco, Ivory Coast, Tunisia, Uganda, and Algeria, as the curtain falls on December 2023. This strategic retreat is designed to channel energies into fortifying their flagship retail platform and the burgeoning Jumia Pay service, spanning an 11-country stronghold. Despite Jumia Food seasoning 11% of the company's Gross Merchandise Value (GMV) with a $64 million contribution in the initial three quarters of 2023, the service simmered on a low flame of profitability, prompting the platform to trim its menu of offerings. The decision to decommission Jumia Food follows a rollercoaster ride of soaring highs in 2021 and a sobering dip in consumer engagement this year, a downturn partly stirred by a recalibrated strategy to stew in profitability by nurturing high-performing categories and curbing promotional appetites. Meanwhile, the African food delivery scene is witnessing a reshuffle, with Bolt Food packing up its bags in Nigeria and South Africa, citing economic headwinds, inflationary pressures, and a cutthroat market. Yet, as some doors swing shut, others swing open. Barcelona's Glovo is dishing out its services across Sub-Saharan Africa, forging alliances with top-tier restaurant chains. On the home front, Nigeria's Chowdeck is savoring a feast of milestones, serving up a testament to its capital-smart approach, though the recipe for profitability remains elusive in the expansive food delivery kitchen. The African food delivery sector is a smorgasbord of potential, with growth on the horizon, but the quest for profit is a tough nut to crack, mirroring the global grapples of giants like Doordash and Uber Eats have struggled to make profits despite raising billions of dllars and operating for close to a decade. The unit economics are ve