Jumia

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JUMIA
Public
Traded asNYSEJMIA
IndustryInternet, Retail, Ecommerce, Marketplace
Founded2012
HeadquartersIkeja, Lagos State, Nigeria
Key people
  • Jérémy Hodara
  • (CEO)
  • Sacha Poignonnec
  • (CEO)
Number of employees
5100
Websitegroup.jumia.com

Jumia is an e-commerce platform for electronics, fashion, and more. The platform consists of a marketplace, which connects sellers with consumers; a logistics service, which enables the shipment and delivery of packages from sellers to consumers; and a payment service, which facilitates transactions among participants active and Jumia's platform in selected markets.[1] It has partnered with more than 81,000 local African companies[2] and individuals and is a direct competitor to Kilimall in Kenya and Konga in Nigeria. Started in 2012 in Lagos, the company currently has a presence across 12 African countries.

History[edit]

In 2012, Jeremy Hodara[3] and Sacha Poignonnec[4], ex-McKinsey consultants, founded Jumia along with Tunde Kehinde and Raphael Kofi Afaedor.

Jumia was launched in Lagos in 2012 and expanded to five other countries: Egypt[5], Morocco, Ivory Coast, Kenya and South Africa. In 2014, the company launched offices in Uganda, Tanzania, Ghana, Cameroon, Algeria and Tunisia, and by 2018 it was present in 14 African countries.[6] In Egypt, Jumia has been trying to categorize itself as one of the leading e-commerce websites.[7]

In June 2013, Jumia launched Jumia Travel, a hotel booking platform, and Jumia Food, a food delivery platform.[8] Jumia Deals was launched in April 2015. In 2017, Jumia launched Jumia One,[9] an app that enables customers to pay bills such as airtime. The same year, Jumia launched Jumia Pay,[10] a secure payment for people to shop on all Jumia services. This was followed by the Jumia lending program,[11] an initiative that allows its vendors to access business loans. Jumia would later partner with Amadeus technology[12] to launch a platform that enables people to book flights.

In South Africa, Jumia operates under the brand name Zando (zando.co.za),[13] focusing only on online fashion retail.

Juliet Anammah: CEO in Nigeria

At the end of 2015, the founders of Jumia appointed Juliet Anammah as the CEO of Jumia Nigeria so that they could concentrate on global control of the company.[14] In 2015, Jumia generated $234 million in revenue, which stands for a 265% growth from 2014. In 2016, Jumia became the continent’s first unicorn being valued over 1 billion USD.[15] In late November 2018, Jumia partnered with cryptocurrency company Telcoin to enhance payment service capabilities throughout their areas of operation.[16] The same month, Jumia and Carrefour signed a partnership to sell online products in Africa.[17]

In April 2019, Jumia went public on the New York Stock Exchange (NYSE) and raised $196 million in net proceeds.[18] The share price, initially offered at $14.50, rose more than 200% in the first three trading sessions.[19]

The first analyst papers release 21 days after the IPO rated the company at stock targets between 27 and 40 USD.[20]

Fraud allegations[edit]

In May 2019, Citron Research called Jumia a "securities fraud" and the equity "worthless", citing material discrepancies regarding key financial metrics among a confidential investor presentation and Jumia’s F-1 filing to the SEC from April, 2019.[21] Jumia's share price sank more than 20% after the report was published.[22] Citron is operated by well-known short-seller Andrew Left known on Wall Street for making several claims of fraud and has faced calls to be investigated.[23] Citron's founder has been banned from trading in Hong Kong for making claims which are "false and misleading and likely to alarm ordinary investors".[24]

Investors[edit]

In 2012, Kasuwa (which means Market in Hausa Language) was launched with the support of Rocket Internet, MTN, and Millicom, and was later renamed Jumia Group. In March 2016, Jumia Group secured over €300M of funding from MTN, Rocket Internet, AXA, Goldman Sachs, Orange and CDC.[25]

As of 2019, the largest shareholder was MTN Group.[26]

In December 2018, Pernod Ricard invested in Jumia.[27]

In March 2019, Jumia received 50 million euros in investments from Mastercard.[28]

Awards and recognition[edit]

  • 2013 Brand Journalists Association of Nigeria Awards (Online Retail Brand of the Year)[29]
  • 2013 World Retail Awards[30]
  • 2014 Best Online Retail Brand of the Year Award[31]
  • 2016: Jumia ranked 82nd in the Top WIRED 100 list[32]
  • Jumia is listed among the Massachusetts Institute of Technology’s Smartest Companies 2017. Ranking 47 on the list, Jumia is the only African company named in MIT's top 50 smartest companies.[33]

References[edit]

  1. ^ "Sacha Poignonnec, Co-CEO, Jumia". 2018-11-28.
  2. ^ "the Alibaba of Africa that's getting ready to IPO". 2019-03-31.
  3. ^ "Interview:E-commerce:Jérémy Hodara a créé la première licorne africaine Jumia". 2018-11-11.
  4. ^ "Interview: Sacha Poignonnec Co-CEO, Jumia". 2018-11-26.
  5. ^ "Africa's E-Commerce Giant Sets Sights on This Promising Market". 2018-05-07.
  6. ^ "Rocket Internet's African e-commerce startup Jumia ready for next stage". 2018-01-08.
  7. ^ "Business Today to honor Egypt's influential companies February". EgyptToday. Retrieved 2019-01-20.
  8. ^ "Jumia Food launches online pre-payments in Kenya and Uganda". 2018-08-28.
  9. ^ "Jumia launches multi-purpose e-commerce app". 2018-03-26.
  10. ^ "E-commerce : Jumia désormais maître de ses transactions". 2018-07-02.
  11. ^ "E-commerce specialist Jumia aims to grow lending service". 2018-07-09.
  12. ^ "Africa paves the way for travel innovation with the launch of a new Travel Marketplace". 2018-10-17.
  13. ^ "Buy Shoes, Clothing & Fashion | Online Shopping at Zando". www.zando.co.za. Retrieved 2019-05-11.
  14. ^ text, I. love telling stories using; pictures; details, videos It’s all about the little (2015-12-28). "Jumia Nigeria Appoints Juliet Anammah as new CEO". Techpoint.Africa. Retrieved 2018-12-15.
  15. ^ "Meet the Startup Building a Market From Scratch to Become Africa's Alibaba". 2018-05-25.
  16. ^ "Telcoin partners Jumia to enhance service and efficiency". 2018-11-26.
  17. ^ "Carrefour signs deal with Jumia to offer online shopping in Kenya". 2018-11-29.
  18. ^ "Shares of African e-commerce company Jumia jump 71 percent in debut". Reuters. 2019-04-12. Retrieved 2019-04-17.
  19. ^ Olukoya, Samed (2019-04-16). "Jumia Jumps 204% in Three Days". Retrieved 2019-04-17.
  20. ^ Johnson, Mo (2019-05-10). "Jumia Technologies (JMIA) Research Coverage Started at Stifel Nicolaus". Tech Know Bits. Retrieved 2019-05-11.
  21. ^ Citron Research. "Not All IPOs are Created Equal. Jumia is a Fraud" (PDF).
  22. ^ Garcia, Tonya. "Citron Research's Andrew Left slams Jumia as a 'fraud' and 'worthless'". Market Watch. Retrieved 2019-05-10.
  23. ^ "Jumia responds to citron fraud claims". Quartz Africa. Retrieved 2019-05-13.
  24. ^ "Hong Kong tribunal bans Citron's Left for 5 years in landmark ruling". Reuters.com. Retrieved 2016-10-16.
  25. ^ "Tech conglomerate raises €50 million funding round from CDC". Pulse.ng. 13 March 2019.
  26. ^ "Jumia to be first African start-up on NYSE". BBC News. 7 August 2016. Retrieved 13 March 2019.
  27. ^ "Pernod Ricard invests in Africa's online retailer Jumia". Reuters. 18 December 2018. Retrieved 18 December 2018.
  28. ^ "Mastercard to Join Investors in Africa Online Retailer Jumia". Bloomberg. 1 April 2019.
  29. ^ http://www.bizcommunity.com/Article/157/87/109102.html
  30. ^ "Rocket Internet's Jumia Becomes First African Company to Win Top World Retail Award". 2013-10-10.
  31. ^ "Jumia Nigeria wins best online retail brand of the year award". 2014-01-21.
  32. ^ "The WIRED 100". 2016-08-26.
  33. ^ "50 Smartest Companies 2017". 2017-01-01.