Funding Startups: Between Growth and Risk of Failure – The Case of JUMIA

This article explores the impact of financing strategies on the growth and bankruptcy risks of startups, illustrated by the case of Jumia, a pioneering e-commerce platform in Africa. Founded in 2012, Jumia quickly raised significant funding and went public on the New York Stock Exchange, thereby becoming the first African e-commerce company to achieve this milestone. However, despite its initial success, the company faced allegations of fraud, profitability challenges, and an unstable economic environment. Through an analysis of Jumia’s financial reports and significant events in its history, this article highlights the complexities of financing African startups and draws lessons for other companies operating in similar contexts. The conclusions emphasize the need to rethink funding models to support a sustainable entrepreneurial ecosystem in Africa.