Nigeria-based e-commerce platform Jumia is gearing up for a $250m initial public offering in the US that would provide an exit for investors including e-commerce group Rocket Internet, Reuters reported yesterday.
The company has earmarked early 2019 for the IPO and will target a valuation of approximately $1bn, people familiar with the matter told Reuters. No final decisions on the financial or timing details have been made.
Founded by Rocket Internet in 2012, Jumia operates an online store that sells consumer goods in 14 countries across Africa. It has also developed tools to book hotels online and operates a food delivery platform.
Jumia sold €315m ($370m) worth of goods in the first half of this year and grew its active customer base to 2.8 million. It made an adjusted loss of €120m before interest, tax, depreciation and amortisation in 2017 while increasing revenue 11% to €94m.
The company is a subsidiary of Africa Internet Group (AIG), a partnership between Rocket Internet and mobile network operators MTN and Millicom International Cellular. It last raised funding in a $150m series C round in 2014 led by AIG.
The 2014 round included Summit Partners and other, undisclosed existing shareholders. Summit had led a $26m series A round for Jumia in March 2013, followed by a $35m investment by Millicom three months later.
AIG itself went on to raise more than $465m in funding across multiple rounds in 2016, beginning with a $326m round led by MTN in March that also featured Rocket Internet, insurance provider Axa and investment bank Goldman Sachs.
Telecommunications firm Orange supplied $85m for AIG the following month, before UK development finance provider CDC Group injected $55m in August. AIG has not revealed how much of that capital was channelled into Jumia, the group’s flagship company.
Citi, Morgan Stanley and Berenberg have reportedly been hired as underwriters for the proposed offering.