African e-commerce company, Jumia Technologies filed for an Initial Public Offering (IPO) on the New York Stock Exchange (NYSE) yesterday under the United States Securities and Exchange Commision (SEC). This filing was confirmed by Sacha Poignpnnec, the CEO of Jumia.
“We intend to benefit from the expected growth of e-commerce in Africa through the investments that we have made and the extensive local expertise that we have developed since our founding in 2012,” Jumia said in the filing.
Jumia’s move to go public is as a result of notable consumer digital sales startups have waned in Nigeria. For example, Konga.com, an early competitor in the e-commerce sector, after facing a lot of challenges, was sold for an undisclosed sum to Zinox Technologies in 2018. The distressed acquisition of Konga.com created losses for investors such as South African media, internet and investment company, Naspers.
Following the sales of Konga, another Nigerian online sales platform, Dealdey shut down towards the end of 2018. This week, we also reported that consumer focused venture, Gloo.ng has dropped from consumer e-commerce to business-to-business e-procurement platform called Gloopro.
See also: Former E-Commerce Platform, Gloo.ng, Now Gloopro, an E-procurement Platform
Founded in Lagos in 2012 with Rocket Internet, Jumia now operates multiple online platforms in 14 African countries including Ghana, Kenya, Ivory Coast, Morocco, and Egypt. Their goods and services lines include Jumia Food, Jumia Flights and Jumia Deals. According to company data, Jumia processed more than 13 million packages in 2018.
The company has created many components for its digital sales operations which includes JumiaPay payment platform, trucks and motorbikes delivery services in Lagos, Nigeria. There are over 81000 active sellers and SMEs who sell goods ranging from fashion items, electronics to food items on Jumia’s online platform. Sellers can sign-up to access their payment and delivery network, and also conduct data and analytic services.
Poignonnec said that last year, Jumia had 4 million consumers in countries that cover the vast majority of Africa. It is focused on growing existing business, leadership position, number of sellers and consumer adoption in those markets.
Jumia has not yet turned a profit, but a snapshot of the company’s performance from shareholder Rocket Internet’s latest annual report shows an improving revenue profile. The company generated €93.8 million in revenues in 2017, up 11 percent from 2016, though its losses widened (with a negative EBITDA of €120 million). Rocket Internet is set to release full 2018 results (with updated Jumia figures) on April 4, 2019
Jumia will double down on its current strategy and regional focus with the imminent IPO capital. Bloomberg news reported last month that an IPO would value Jumia at about $1.5 billion, while largest shareholder MTN Group is looking to raise about $600 million to pay down debt.
Jumia shareholders include Goldman Sachs Group, Millicom International Cellular, Orange and Africa Internet Group, a venture backed by Goldman, MTN and Rocket Internet.