One of Africa’s leading e-commerce platforms, Jumia could have a new owner soon. This announcement comes as its parent company, Rocket Internet is planning to list loss making Jumia on either the London Stock exchange or Frankfurt Stock exchange.
This is coming one month after Jumia’s major competitor Konga was acquired by Zinox and online classified ads platform OLX announced it was shutting down operations in Nigeria.
Rocket Internet is expected to list shares worth 200 million euros ($245.7 million), in late 2018 or in 2019.
According to people familiar with the matter, this exit is in line with Rocket Internet’s strategy of selling or listing established internet firms. Last year, Rocket Internet floated online food groups Delivery Hero and HelloFresh. It is also preparing to float its online furniture retailer Home24.
Earlier this year, Rocket Internet Chief Executive Oliver Samwer told Reuters that the company needs to hold on to its mountain of cash so it can compete with rivals from the United States and China and pounce when investment opportunities arise.
According to a presentation from Rocket Internet, Jumia saw its adjusted loss before interest, tax, depreciation and amortization widen to 80.7 million euros in the first nine months of 2017. Revenues edged up to 57.3 million euros.
What you didn’t know about Jumia
- Jumia started operation in 2012.
- It has ecommerce operations in 14 countries throughout Africa, a continent with 1.2 billion consumers and 15 million small and medium-sized companies.
- It also features services such as an online hotel booking and a food delivery platform.
- Jumia said in January that it had 1 billion visits on its pages across Africa in 2017. It has 50,000 merchants in its ecosystem, where 5million products, hotels, restaurants and other services are listed.