So it like everyone is starting to go for an IPO these days. African e-commerce company jumia has just filed an IPO on the New York Stock Exchange today, per SEC documents and confirmation from CEO Sacha Poignonnec.
As for valuation,timeline, and share price, those would be communicated in coming week. If the filing goes smoothly the nigerian-headquarted company would be the first African tech startup to list on a major global exchange. The actual date for the IPO has not been specified but the minimum SEC timeline for beginning sales activities (such as road shows) is 15 days after submitting first documents. Lead adviser on the listing is one Morgan Stanley.if you can recall there have been lots of rumours about jumia’s IPO but all were just lies until now.
Jumia’s move to go public comes as several notable consumer digital sales startups have faltered in Nigeria — Africa’s most populous nation, largest economy and unofficial bellwether for e-commerce startup development on the continent. Konga.com, an early Jumia competitor in the race to wire African online retail, was sold in a distressed acquisition in 2018. In a briefing Poignonnec said “You’ll see in the prospectus that last year Jumia had 4 million consumers in countries that cover the vast majority of Africa. We’re really focused on growing our existing business, leadership position, number of sellers and consumer adoption in those markets,”
Jumia has also been good when it comes to support for traders and sme’s, Jumia Nigeria CEO Juliet Anammah told TechCrunch during a session that “There are over 81,000 active sellers on our platform. There’s a dedicated sellers page where they can sign-up and have access to our payment and delivery network, data, and analytic services,” The most popular goods on Jumia’s shopping mall site include smartphones (priced in the $80 to $100 range), washing machines, fashion items, women’s hair care products and 32-inch TVs.
As demonstrated in other global startup markets, consumer-focused online retail can be a game of capital attrition to outpace competitors and reach critical mass before turning a profit. With its unicorn status and pending windfall from an NYSE listing, Jumia could be better positioned than any venture to win on e-commerce at scale in Africa.