Germany-headquartered e-commerce marketplace Jumia filed yesterday to raise $100m in a US initial public offering that would enable corporates Axa, Millicom, MTN, Orange, Pernod Ricard and Rocket Internet to exit.
Jumia runs an e-commerce platform that sells a diverse range of goods including electronics, clothing, cosmetics and home goods across 14 African countries. It increased revenue 39% to almost $150m in 2018 but made a $195m loss in the same period, according to the IPO filing.
The company raised $26m in a series A round led by venture capital firm Summit Partners in 2013, the year after it was founded, before mobile network operator Millicom provided another $35m later the same year.
Africa Internet Group (AIG), a partnership between Millicom, e-commerce holding company Rocket Internet and telecommunications firm MTN, invested $135m in Jumia in 2014 as part of a $150m series C round that included existing backers, valuing it at $555m post-money.
Insurance group Axa paid about $83m for an 8% stake in Jumia in early 2016 through a deal that also made it AIG’s exclusive insurance provider, before telecoms firm Orange invested $85.4m in AIG shortly afterwards.
Pernod Ricard Deutschland, a subsidiary of alcoholic beverage producer Pernod Ricard, provided approximately $85m in funding for Jumia in December 2018 at a pre-money valuation of approximately $1.6bn, according to the filing.
Many of MTN’s shareholders are also shareholders in AIG, which has traditionally operated as Jumia’s holding company, though the size of their stakes in that entity are different as Jumia’s separation occurred just prior to Pernod Ricard’s investment.
MTN is Jumia’s largest shareholder, with a 29.7% stake, followed by Rocket Internet (20.6%), Millicom (9.6%), AEH New Africa eCommerce, a vehicle with the same name as Jumia, circa. 2014 (8.4%), Orange and Axa (5.8% each), investment firm Blakeney Management (5.2%) and Pernod Ricard (5.1%).
Morgan Stanley, Citigroup Global Markets, Berenberg Capital Markets, RBC Capital Markets, Raymond James & Associates, Stifel, Nicolaus & Company and William Blair & Company are the underwriters for the IPO, which is set to take place on the New York Stock Exchange.
