Did you know who owns Jumia online shopping platform?

Did you know who owns Jumia online shopping platform?

September 5, 2022 Off By TLK

Who owns Jumia Africa? Jumia is the leading online shopping platform in Africa with its headquarters in Lagos, Nigeria. The ecommerce site is the African answer to American giant Amazon Inc.

With its growth and IPO, the company attracted a lot of interest in who owns Jumia.

Jumia has grown tremendously since its inception and launch in 2012 to operate in 16 countries and has over 4,000 employees. The online retailer made an IPO on the New York bourse in 2019 in a bid to raise USD 600 million (approx. KES 60 billion). The firm was valued at USD 1.5 billion.

The IPO did perform to expectation raising only  USD 196 million. Still, that was enough to push the company’s valuation to USD 3 billion with its share price going up 75 percent on the opening day.

Jumia founder

Two French ex McKinsey consultants Jeremy Hodara and Sacha Poignonnec saw an opportunity in the less exploited African online market. In 2012, they founded and launched Jumia in Nigeria through their company African Internet Group. The company grew to acquire assets and overcame a myriad obstacles to become what it is today.

Jumia was the only African company on the Massachusetts Institute of Technology 50 Smartest Companies list in 2017, ranking at position 47. The two owners of Jumia opened the doors to more investors.

Countries where Jumia operates

Jumia exploited the African online space when it was still nascent. That has made it the market leader buoyed by the Covid-19 pandemic that boosted online shopping and food delivery in the continent. Even though the original owners of Jumia left the company, the roots they planted are intact.

Jumia currently operates in the following countries, apart from Nigeria which is the largest market:

  1. Kenya
  2. South Africa
  3. Egypt
  4. Morocco
  5. Ivory Coast
  6. Uganda
  7. Tanzania (now suspended)
  8. Ghana
  9. Tunisia
  10. Algeria
  11. Cameroon (now suspended)
  12. Zambia
  13. Malawi
  14. Botswana
  15. Zimbabwe
  16. Rwanda (now suspended)

Who owns Jumia today?

The current shareholders of Jumia are:

  • African Internet Group (owned by the founders Hodara and Poignonnec)
  • Goldman Sachs Group Inc.
  • Millicom International Cellular SA
  • Orange SA
  • MTN (largest shareholder)
  • Rocket Internet SE

MTN is said to want to dispose off their shares through the IPO in order to reduce massive debt in its own mother company.

Update: 31 Oct 2020

Since we last wrote this article, a lot has changed at Jumia.

German parent company Rocket Internet sold its 11 percent stake in April 2020 for an undisclosed amount and for unknown reasons.

As of October 2020, MTN Group has sold its 18.9 percent stake in Jumia for a whopping net proceeds of USD 142.31 million. The decision is because the South African telecom is on a restructuring that aims to simplify its portfolio for the next five years.

Jumia offloaded its Jumia Travel portfolio to TravelStart. TravelStart is an online flight-booking platform with major operations in South Africa and Nigeria.

Jumia is also suspending operations in some countries. So far Tanzania, Cameroon and Rwanda have gone through the chopping block.

*Note that Jumia might offer service in some of these countries but might not be having physical offices.