Jumia Online Store Plans To Be Sold By Owners

• SHARE
• TWEET

There are plans to sell Africa’s leading e-commerce firm, Jumia, owned by Rocket Internet, a German start-up investor.

The move is coming as Zinox Group, an integrated Information Communication Technology (ICT) solutions conglomerate and Original Equipment Manufacturer (OEM), recently acquired Konga, e-commerce giant.

Reports,  yesterday, suggested that Rocket Internet, is also considering listing Jumia either in Frankfurt or London stock exchange.

This is expected to take place this or next year, but according to Reuters, Rocket Internet is expected to “shortly mandate banks for an initial public offering of Jumia.”

Rocket Internet helped set up Jumia in 2012, but the firm has been operating with loss for years despite conquering the market space.

But the owners are seeking a way out from the consumer electronics and fashion retailer, in line with its strategy of selling or listing established internet firms.

Reuters said Berenberg, which has a track record of working with Rocket on capital market transactions, is seen to be in a good position to win a mandate, the people said.

A listing of shares, in a volume of under €200 million ($245.7 million) is expected to be floated, but no information on Jumia’s valuation was immediately available.

Last year, Rocket Internet floated online food groups, Delivery Hero and HelloFresh, while the investor is currently also preparing a flotation of its online furniture retailer Home24.

1.2 billion consumers and 15 million small and medium-sized firms. 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 five million products, hotels, restaurants and other services are listed.

According to a presentation from Rocket Internet, Jumia saw its adjusted loss before interest, tax, depreciation and amortization widen to €80.7 million in the first nine months of 2017. Revenues edged up to €57.3 million.

Only recently, Zinox Group acquired Konga in a move that is expected to raise the profile of e-commerce in Nigeria.

The acquisition has been viewed by industry watchers as a major development that could see e-commerce in Nigeria finally unlock the massive revenue potential in the global multi-billion-dollar industry

Share this

Share on FacebookPlus on Google+