It may not matter directly to you. But if you are an African founder with a plan to list on a foreign exchange, investors will open one book – the Jumia book. Yes, they will check how the company has performed in the NYSE. Because Jumia self-baptized itself as “Africa’s first” in the big board, what happens to it matters. But as it stands, gravity is pulling Jumia badly.
It began life at $14.50 reaching the summit at $49.77. Today, it is at $17.02. Jumia needs a breakthrough, urgently, as the trajectory does not look good. It needs to play double play as it has accumulated capabilities to do just that. That is the promise, not just adding “e” before “commerce”.
---Jumia Surged 75%, Hits $3.9 Billion Cap on First Trading Day on NYSE
1. Advance your career with Tekedia Mini-MBA (Sept 13 – Dec 6, 2021): 140 global faculty, online, self-paced, $140 (or N50,000 naira). Click and register here.
2. Click to join Tekedia Capital Syndicate and own a piece of Africa’s finest startups with a minimum of $10,000 investment.
How can we help to reverse these forces of gravity pulling Jumia down?
Double Play Strategy – Jumia has all the pieces to execute it. It needs to become the ECommerce Operating System in its markets.
That is also the downside of being the ‘first’, if it goes well, the later entrants are viewed more favourably, and when it goes badly, it becomes a reference on why not to invest in certain businesses and places.
On the whole, it’s still over $2 above its initial price, a stunted growth perhaps.
Now Jumia needs to launch something, and then craft a new storyline that can turn heads.
It needs a double play to get out of this paralysis