On Dec 2, 2017, I wrote “Konga should sell itself” to Jumia. And within days, the company was sold to Zinox Group which kept its brand, folding Yudala under it. Today, I am making a hard call on Jumia: this company may need to look at options. From the high of $63, the share traded less than $6 yesterday in New York.
Jumia is a great company and has one of the most important leverageable factors in the African modern business climate. Its market cap is around $520 million as I write. There are two things I will do in six months that will bump its market cap in 6 months. It is severely underperforming; we will fix it and it will compound.
Can Flutterwave do a reverse merger via Jumia on its way to IPO? Since it is worth $3 billion, it can give Jumia shareholders 30% of its value. After the process has been completed, it will change the name from Jumia to Flutterwave in the stock exchange.
Tekedia Mini-MBA edition 16 (Feb 10 – May 3, 2025) opens registrations; register today for early bird discounts.
Tekedia AI in Business Masterclass opens registrations here.
Join Tekedia Capital Syndicate and invest in Africa’s finest startups here.
A reverse merger is when a private company becomes a public company by purchasing control of the public company. The shareholders of the private company usually receive large amounts of ownership in the public company and control of its board of directors.(investopedia)
---
Register for Tekedia Mini-MBA (Feb 10 - May 3, 2025), and join Prof Ndubuisi Ekekwe and our global faculty; click here.