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.
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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)