Kukula Capital (Kukula), a Danish-Zambian partnership financing growing companies in Zambia, and eVentures Africa Fund (eVA), a Dutch venture capital fund specialized in e-commerce in Africa, have recently announced the signing of a transaction with Dot Com Zambia for a total amount of USD 500,000 or ZMW 5 million.
The transaction is meant to support Dot Com Zambia to expand its e-commerce platform in the country and to tap Kukula and eVA’s network to deploy its proprietary digital bus ticketing system across the Sub Saharan region.
Dot Com Zambia’s expansion plan, is in line with eVA’s mandate to build world-class technology platforms in Africa, explained in a statement eVA’s Managing Director, Mr. Vincent Kouwenhoven.
The long term objective is to encourage entrepreneurs in Zambia and Africa to come up with ideas as Dot Com Zambia to support development in the region, he added.
On the other hand, Dot Com Zambia’s CEO, Mr. Mawano Kambeu, explained that with the recent transaction, the company now counts with the expertise and financial strength to enhance operations and reach a faster growth by adding further value to its clients.
Kukula’s Managing Director, Mr. Nyboe Andersen, stressed the Dot Com Zambia’s leading technology to scale rapidly in its industry and strengthen the company’s portfolio.
The Dot Com Zambia’s e-commerce platform and proprietary digital bus ticketing system have helped the company to become the fastest growing e-commerce company in Zambia reaching 18 employees and USD 741,000 in revenues in 2014 according to eVA’s website.
Dot Com Zambia accounted for over 2% of the total e-commerce sales in Middle-East and Africa in 2014 which totaled USD 33.75 million up from USD 14.41 million in 2011 according to eMarketer, an independent market researcher on digital commerce.
The e-commerce industry in Africa which grew in the last four years at an average rate of 33.6% per annum, is expected to grow at a rate of 40% by 2025 according to a recent McKinsey report.