Jumia’s major investor seeking exist from company
Rocket Internet, the parent company of Jumia, a popular only shopping platform in Nigeria, is reportedly considering withdrawing its investment from the online retail store.
According to a Reuters, which cited insider sources, the German start-up investor is exploring a stock market listing of Jumia.
Rocket Internet helped in setting up Jumia in 2012 but the online retail store, which has since spread across 23 African countries, is said to be a loss-making company.
Last week, Juliet Anammah, CEO of Jumia Nigeria at the launched of its 4th Mobile Report in Lagos, said that sales of mobile phone increased by 70 percent in 2017 from 2016 with Nigeria accounting for half of the total sales, however, this has not stop the purported move by Rocket Internet to withdraw from the company a strategy the company have adopted in selling or listing established internet firms.
The investor is expected to shortly mandate banks for an initial public offering of Jumia, which describes itself as Africa’s leading online shopping destination, the report said.
The sources said a German investment bank, Berenberg, which has a track record of working with Rocket on capital market transactions is in a good position to win a mandate.
A listing of shares, in a volume of under 200 million euros ($245.7 million), could take place in late 2018 or in 2019, either in Frankfurt or in London, one of the sources was quoted as saying.
Rocket Internet was said to have declined to comment on the matter.
The company’s Chief Executive, Oliver Samwer, had earlier in 2018 told Reuters that Rocket 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.
In January, Jumia said that it had 1 billion visits on its pages across Africa in 2017.
It also said it has 50,000 merchants in its ecosystem, where 5 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 euros in the first nine months of 2017. Revenues edged up to 57.3 million euros.
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