Rocket Internet, the company that helped start Jumia back in 2012 is well-known for clowning US startups and launching them in emerging markets. This same company then sells their clowns and cashes out.
Just the other day, Rocket Internet listed part of their portfolio; Delivery Hero, HelloFresh (both in the online food delivery business) and Home24 (an online furniture retailer) on Frankfurt Stock Exchange, making off with significant dollars in the process. Well, it seems like time for Jumia has come. The e-commerce platform that now commands a presence in 14 African countries and boasts of being Africa’s leading shopping destination, has been on a growth spree, both in revenue and losses.
The company which has undergone a few changes here and there announced that they had made about $110 Million in revenue against $140 Million in losses. So far, Jumia has raised over $700 Million in equity financing and Rocket Internet currently owns only 28% of the e-commerce platform.
Information on the interwebs points to a possible listing of Jumia on the New York Stock Exchange with a valuation of $1 Billion. The IPO which might go live during the first quarter of 2019, will see Jumia sell as much as $250 Million in shares, which could translate to a clean exit of Rocket Internet from the business.
Despite being a loss-making machine, Jumia’s future still shines brightly. The platform has a high command in the continent and with the growing shift from traditional brick and mortar stores to online shopping, coupled with the ever-increasing internet penetration across the continent, Jumia’s negatives could soon be crossed with profits.
To put this into perspective, Jumia’s sales have grown to over 8 million orders in 2017, valued at over $369 Million. “Jumia continues to be on a great track… it is the market leader outside South Africa across the continent… it is more an ecosystem than a company,” said Oliver Samwer, Rocket Internet Chief Executive Officer, while speaking to Reuters.