Jumia Becomes First African-Built Internet Startup To Launch An IPO
Jumia’s historic initial public offering has gone live last Friday trading on the New York Stock Exchange and its stock shot up.
The African eCommerce giant has sold 13.5 million American Depositary Shares at $14.50 each to raise $216 million and will be trading with the stock symbol “JMIA”.
With the public offering, Jumia is first African-built internet startup to launch an IPO and be listed on the NYSE. Jumia also joins the ranks of a few African companies listed on an American stock exchange.
While the sharp jump on its first day of trading signals a positive outlook from investors, it is by no means a permanent trend as another recent high-profile tech IPO proves. After launching amid strong interest and gaining on its share price on its first trading day, ride-hailing company Lyft has broken its IPO price just two weeks after its launch.
So Jumia has not turned a profit, but its revenues have increased steadily, up 11 percent to €93.8 million (roughly $106.2 million) in 2017 and up again to €130 million (or $147 million) in 2018.
Founded in 2012 as a Rocket Internet-backed startup for Nigerians to buy and sell online, Jumia has come a long way and had a positive impact on the Nigerian and African startup ecosystem.
In 2016 Jumia became the first African unicorn with a $1 billion valuation following a $326 million funding round.