Jumia, a Pan-African e-commerce company has filed for an Initial public offering (IPO) on the New York Stock Exchange today. You can see the Securities and Exchange Commission document here. Also, the CEO of Sacha Poignonnec confirmed this to TechCrunch.
In the coming weeks, the valuation, share price and timeline for public stock sales will be determined for Jumia which headquarter is now based in Nigeria because of the support it is getting from Nigerians online shoppers.
If this filing process goes smoothly, Jumia will become the first among African tech startup to be listed on major global exchange.
Although no date was giving for the actual IPO, but 15 days is SEC minimum timeline for beginning sale activities after you have submitted first documents. Morgan Stanley is the lead adviser on the listing.
Recall there have been series of reports that the Pan-African e-commerce company Jumia is about to file for an Initial public offering (IPO) of which Jumia have never consented to until today when the evidences have started
Many digital sales startups have fail to make impact in Nigeria e-commerce sector. Nigeria is a good ground for e-commerce startups and new intake to start seeing success if they know what they are doing. Nigerians like shopping online and Jumia has leveraged on that to become Africa’s most successful e-commerce company today. Companies like Konga were a major contender until it was in 2018 sold to another company in what can be said to be a distressed acquisition.
According to Poignonnec, “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”.
If this IPO come to limelight, this will give Jumia a headway over other companies in Africa. Recall, in 2016, Jumia became the first African startup giant to achieve a valuation of $1 billion after a 326 dollar funding round AXA, MTN and Goldman were included.
Jumia which was founded in Nigeria (Lagos state to be précised) is now having operational base in different African countries like Ivory Coast, Kenya, Morocco and Egypt, Ghana. This company also indulged in other services like Travel bookings, Classifieds, known as Jumia Deals and online takeout service, known as Jumia Food.
Jumia has made it possible for retail traders; SME’s to showcase their goods and services on their platform. With this SMEs can now leveraged on the massive traffic Jumia is getting to sell their goods and services online.
Jumia’s giant step to list on the NYSE comes amidst the uncertainties surrounding B2C e-commerce in Nigeria.
This listing by Jumia.com.ng on NYSE can be projected to bring good windfall for the company which is better placed to succeed on e-commerce than any other business in the continent of Africa and even the world. Who knows Jumia might be heading to be the next Amazon or Alibaba.