On Thursday the Africa Internet Group (AIG), the parent company of the largest e-commerce platform in Africa, announced that it has secured more than €300 million ($245 million) in financing from Goldman Sachs and its existing investors, which includes AXA, MTN and Rocket Internet. This announcement welcomes one of the leading global financial service firm, Goldman Sachs as one of its newest investors after AXA insurance, which invested in the company last month.

“This investment is a recognition of the success that Jumia has already achieved and provides us with a strategic flexibility to further support our efforts to offer the best shopping experience to our customers,” said founders and co-CEOs of Jumia and the AIG, Sacha Poignonnec and Jeremy Hodara.

According to the group, the new funding from investors would significantly strengthen the balance sheet of AIG to enable it leverage the significant growth of Jumia and to capitalize on the significant opportunities in Africa.

This is a welcome development for Jumia, which was speculated to be on the verge of collapsing after sacking about 30 percent of its staff. It also shows that the demand for consumer business and middle class in the continent is growing rapidly. Africa continues to experience rapid growth of digital technology, which includes e-commerce and mobile payment.

Jumia launched in 2012 and is currently present in 11 African markets including Nigeria and Kenya. It provides the platform for local African businesses to sell products to the fast-growing base of African consumers in particular to the rapidly emerging middle class.