Updated: February 28, 2021
Nigeria-based e-commerce company, Jumia, which operates in various African states is set to become the first African start-up to be listed on the New York Stock Exchange.
“Jumia could go public in the next month,” BBC reported, citing recent deposition of the company’s documents and its intention to hit the public at the NY Stock Exchange, the world’s largest stock exchange market.
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The online retailer, reports hold, was founded in Lagos by two French entrepreneurs, Sacha Poignonnec and Jeremy Hodara in 2012 and now offers services to most African population, in some 14 countries such as South Africa, Cameroon, Tanzania, Egypt and Ivory Coast.
Its services range from the retiling of goods to booking and reservation of hotel and flight tickets and mobile tariffs with some four million active consumers as of 2018.
The British Broadcasting Cooperation, BBC reported that “no share price or valuation has been given but there is speculation Jumia could be valued at $1.5bn, despite the fact that it reported a loss of 170m euros ($192m) in 2018.”
BBC Africa Business Editor Larry Madowo says the inconsistent quality of the products Jumia sells and the delivery challenges it faces have often made the company a target of criticism on social media.
Its biggest selling point, he adds, is the acceptance of mobile money payments across the continent where few people have credit or debit cards.
If admitted into the NY Stock Exchange, Jumia which is said to be Africa’s largest e-commerce company will be opened to foreign investments with an endless window of possibilities.
However, Quartz Africa, however, observed that the company could face some restrictions in that the “details of its financials do not paint a pretty picture.”
Jumia is determined to explore new horizons and its filling of an estimated $500m Initial Public Offering, IPO, Plan to list on the NY Stock Exchange might just propel the African e-commerce company to its objective.