Jumia, Africa’s largest e-commerce company is launching its IPO on the New York Stock Exchange. The Amazon wannabe which was founded in 2012 by 2 french men, Sacha Poignonnec and Jeremy Hodara is headquartered in Germany. Jumia is operating in 14 African countries and it is burning through cash. Nevertheless the first African tech unicorn is valued at more than $1 billion and it is expecting to raise $100 million on the market.
The African e-retailer Jumia, launched in 2012 by the French companies Sacha Poignonnec and Jérémy Hodara for the Berlin incubator Rocket Internet, has just submitted its first public document to the SEC for an introduction on the New York Stock Exchange. Currently, the capital of Jumia is divided between the South African telecom operator MTN (30%), Rocket Internet (21%), the Latin American operator Millicom (9.6%), Axa and Orange (6% each). ), Pernod-Ricard (5%), as well as investment funds and banks including Goldman Sachs (all under 5%). The IPO will take the form of a primary transaction: a pure capital increase, which will not allow existing shareholders to sell their shares. The number of shares and their price, therefore the amount that Jumia will seek to raise, will only be known in a second time. But according to Bloomberg, its valuation could be around 1.5 billion dollars.
To develop in the African market, Jumia had to invest in many more activities than a Western or Asian e-trader. It operates at the same time an activity of sale in own and a marketplace, but also a logistic and distribution network, as well as a system of payment, Jumia Pay, which takes step by step on the payment in cash at the reception . In addition, the e-merchant is present on meal deliveries and hotel bookings. Jumia claims for 2018 a business volume of 828 million euros, up 63% year on year. Revenues from its marketplace totaled 47.4 million euros (+ 122%). With operating losses and a negative adjusted EBITDA, the platform, however, shows a two-year gross profit after variable logistics costs, both globally and in its largest market, Nigeria. It boasts more than 300,000 references of 5,000 brands, employs 3,000 employees and has 60% of its managers. Of the 14 countries in which it is active, which has a total population of 660 million, it has 4 million active customers and thus sees a very strong potential, half of its customers already being based outside major cities (25% in secondary cities, 25% in rural areas). This IPO will be the fourth largest fundraiser for the e-merchant.