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Jumia, the African e-commerce company backed by MTN, has filed for a New York initial public offering , which could value the firm at $1.6bn or more.The company says its business is expanding, and the continent’s development will make it a better market, with a growing young population, more infrastructure investments, urbanisation and rapid economic growth.Morgan Stanley, Citigroup, Berenberg and RBC Capital Markets are leading the IPO.
In December, Jumia was valued at €1.4bn with shares at €14.74, according to the filing. Jumia, which now counts Nigeria as its largest market, makes money both by selling its own products and by taking a cut from third-party sales. In 2018, revenues were €130.6m, up from €94m the previous year. However, losses also rose, from €165.4m in 2017 to €170.4m in 2018.In the IPO prospectus, Jumia said that the value of goods sold on its platforms was increasing at a more rapid pace than losses — from €507.1m in 2017 to €828.2m in 2018.
Jumia’s active users — people who bought something at least once in the past year — increased to four-million at the end of December form 2.7-million a year earlier.Other smaller shareholders include Millicom International, AXA Africa Holding and Goldman Sachs.
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