African techies and “Africa Rising” enthusiasts are willing the NYSE listing of African “unicorn” Jumia to succeed, and hopes are high the listing will go off well. But if you read the company’s pre-listing statement, it does illustrate just how amazingly difficult e-commerce in Africa actually is.
Yet, the company is hoping to raise around $1.5bn on the listing, which is backed by everyone you can name, including Morgan Stanley, Citigroup, Berenberg and RBC Capital Markets. Goldman Sachs would normally be there, but they actually own part of the company.
And reading the recently released US Securities and Exchange Commission F-1 listing documents, you can understand why. These documents should be taken with a pinch of salt because they are massively cautionary, basically in order to prevent investors from suing. Hence, every warning under the sun is issued, including the warning that the company might never actually make money.
The problem was that there was an “insufficient cash reconciliation system”. There is now an automated system that allows the company to monitor transactions on a daily basis.Even though we have taken measures to reduce the risks of fraud and uncollected receivables, these risks — whether facilitated by our employees, sellers, partners or consumers — remain, due largely to the prevalence of cash on delivery in many of our markets”.
There is also a bit a dispute about whether it is an African company at all, except in the sense of where it operates. It was set up by two French entrepreneurs, Sacha Poignonnec and Jeremy Hodara in 2012, who are still joint CEOs; it is still registered in Germany, its tech centre is in Portugal and most of the management sit in Dubai. But it does have a bunch of African senior management including Tunde Kehinde, Raphael Kofi Afaedor, and notable Nigerian CEO Juliet Anannah.
Resumimos esta notícia para que você possa lê-la rapidamente. Se você se interessou pela notícia, pode ler o texto completo aqui. Consulte Mais informação:
Portugal Últimas Notícias, Portugal Manchetes
Similar News:Você também pode ler notícias semelhantes a esta que coletamos de outras fontes de notícias.
BUSINESS MAVERICK OP-ED: Business schools are SA’s natural partner in the Fourth Industrial RevolutionSouth Africa is playing catch-up, and while it might aspire to become a leading light in the evolving global developments, realistically, the Presidential Commission on the Fourth Industrial Revolution has set its sights on achieving competitiveness and the need for inclusive growth. No
Fonte: dailymaverick - 🏆 3. / 84 Consulte Mais informação »
BUSINESS MAVERICK: PwC’s Steinhoff report suggests profit was boosted by R106bn in seven yearsFollowing the delivery of the PricewaterhouseCoopers report into Steinhoff, the full impact of the apparent fraud is just beginning to sink in, and even for those expecting the worst, it’s gobsmacking. According to PwC, between 2009 and 2016, the company apparently created fictitious profit-boosting schemes totalling R106bn, which is just under three times the net profit of the company over that period.
Fonte: dailymaverick - 🏆 3. / 84 Consulte Mais informação »
MAVERICK BUSINESS: Group Five: Another SA construction giant buckles under the pressureGroup Five, one of SA’s biggest names in construction and the company that built the Moses Mabhida stadium and King Shaka airport in Durban, filed for business rescue on Tuesday 12 March, becoming the latest in a long line of construction companies that have gone under in the past few years. The question now is not so much whether the company sector can be saved, but whether the sector can ever be revived, and if so, how. When companies like group 5 are crumbling, what chance do we have as smaller construction companies? It's tough It is tough out there.
Fonte: dailymaverick - 🏆 3. / 84 Consulte Mais informação »
MAVERICK BUSINESS: Spear Reit looking sharp as regional focus pays offOne South African property investment company controversially decided to put all its eggs in one basket and focus on just one city: Cape Town. How did that work out? Turns out, pretty well.
Fonte: dailymaverick - 🏆 3. / 84 Consulte Mais informação »
BUSINESS MAVERICK OP-ED: Mark Bristow and his Randgold team tick the right boxes to run the biggest gold merger everMining eats money like competitors eat frankfurters in a hot dog eating competition, writes former mining CEO Peter Flack. This fact and others means that mining executives need to be a different kind of CEO. So what makes a good mining executive? Dig in...
Fonte: dailymaverick - 🏆 3. / 84 Consulte Mais informação »
MAVERICK BUSINESS: A look at what might happen if South Africa is ‘junked’ in two weeks’ time‘Ramaphoria’ may be present in politics, but with South Africa’s business confidence falling on Wednesday to rock-bottom lows, it’s becoming clear that the idea is not gripping the economy, posing an increasingly pressing question: What will happen if South Africa is ‘junked’ at the end of March?
Fonte: dailymaverick - 🏆 3. / 84 Consulte Mais informação »