- Why we Listed in New York Exchange, by Jumia
E-commerce giant, yesterday said the dearth of long term investors in e-commerce business in Nigeria and Africa made it to explore the United States (U.S.) where there is deeper understanding of how the market works.
Jumia Nigeria’s Chief Executive Officer (CEO), Juliet Anammah, said in the U.S., there are investors prepared to invest and wait for long term returns on investment (RoI), adding that in Africa, there aren’t so many of such. According to her, e-commerce platforms are not reputed to make a profit in the short term, stressing that investors in Alibaba had to wait for long term RoI.
She, however, did not rule out an African listing, saying that may happen by 2022 when investors must have understood the dynamics of the industry.
Anammah, who met reporters at the firm’s corporate headquarters in Lagos yesterday, said the company was weighing options – including taking legal action – against Citron Research which released a controversial report last Friday.
Jumia, on April 12, became the first African tech stock to list on Wall Street and its shares soared as analysts branded it the ‘Amazon or Alibaba of Africa’.
But the shares fell sharply after Citron Research’s publication which questioned some of Jumia’s sales figures and accused the firm of fraud. The shares have since rebounded.
Anammah said Jumia was weighing options and would report back to shareholders.
“We are looking at it (taking legal action). The board is looking at it,” she said, in response to a question from media.
Anammah the firm against three specific issues raised in the Citron report: fraud involving top Jumia management; recent cases of fraud show heightened risk at Jumia; and that Jumia has allegedly shown a pattern of corporate fraud in the past.
She pooh-poohed the allegations, describing them as false and deliberately aimed at hurting Jumia.
Anammah said: “Some recent allegations were made about Jumia on the basis of selected, biased or unverified facts with what appears to be a clear objective of damaging Jumia.
“We held our earnings call on Monday May 13th and we published our first quarter results, which we are very pleased with, and provided information to demonstrate those recent allegations are wrong.”
She encouraged the public to download the company’s results, which “are publicly available,” and verify things for themselves.