European internet and investment company, Rocket Internet is reportedly seeking an exit from Jumia, one of Africa’s largest eCommerce platforms, through an initial public offering(IPO).
According to an unconfirmed report on Reuters, this is in line with Rocket Internet’s strategy of ‘building and selling’ online startups. The report further claims that €200 million ($245.7 million) — or slightly lower — could be listed in Frankfurt or London in late 2018 or early 2019.
On the surface this potential exit looks like their typical move. On the other hand, it may not be.
The Zinox Group recently acquired Konga in a deal that shook the African eCommerce and tech space. Regardless of that fact that Konga reportedly seemed to have made profit in recent times, an extensive report showed that two of its major investors — Kinnevik and Naspers — still jointly lost 93% upon the company’s acquisition.
Some people are of the opinion that the Konga acquisition is good for the ecosystem as it is one of the first major exits. But for an investor, this can be scary because regardless of the experimentation, no investor likes to lose money.
Is Rocket Internet running away? Nigeria is Rocket Internet’s biggest market in Africa, and this recent rumbles are enough to trigger a flight in any investor.