Also according to http://www.asx.com.au/asx/statistics/announcements.do?by=asxCode&asxCode=FDV&timeframe=Y&year=2017 everything cost $500k
My understanding is that the cost was Afribaba + $500k.
Full details here http://www.asx.com.au/asxpdf/20171103/pdf/43ny0xgfsp2gtk.pdf
UPDATE 11:40, November 11, 2017:
According to an email from Frontier Digital Ventures CEO and founder, Shaun Di Gregorio:
We (FDV) are the ones who acquired Jumia House Nigeria and are merging it with ToLet.
This claim is inconsistent with the press release sent out by ToLet, which clearly states otherwise.
We have reached out to both parties for further clarification. This is a developing story.
After all the hype Jumia is finally imploding Warning to all Startups I guess
Like I said in my thread about forgetting Silicon Valley dreams: most of the startup sales you see in Africa are desperate moves to save face. No one makes any big money selling startups in Africa
jumia isnt seling off everything one by one,what jumia is doing is reducing their risk and selling businesses that arent going to be profitable. so expect jumia to be left with only the ecommerce site
Understood but is the eCommerce platform making profit?
you need to understand that jumia ecommerce site made 86 million euros in revenue from its biggest market(Nigeria and Egypt ) last year. so why should they sell it,even if they sold it,which tech company/bank/ecommerce company in nigeria can buy it?
inbetween it will be bad rep for nigeria eco system if jumia leaves Nigeria, it will send a message to the world that our economy is just a big sham and send a message that dont invest in Nigeria,doing business is expensive there,implication will be VCs changing strategy in the market and not wanting to invest.
Revenue does not necessarily translate to profits
The 86 million euro revenue was from the entire group combined(Jumia House, Car, Store, Travel, Market etc). You said that you think they are selling the unprofitable parts of Jumia, but the whole of Jumia is grossly unprofitable, on track to make a $120m loss this year alone. After this is pointed out to you, you start backpedalling. Disingenuous.
Are you an authority on jumia business.,why the enthusiasm on jumia problems,suddenly jumia sold a part of its business to a Nigerian startup everybody is going crazy,nobody is thinking about the cost/implications that might have be incurred or the hidden debt jumia house might have incurred which might give problems to the new owners.
jumia brand in 2016 made a revenue of 84.4 million euros and a gross profit of 30.8 million euros,the cash position of jumia brand as at 2016 is 29.5 million euros.
in 2017 H1 jumia brand made a revenue of 37.5 million euro and a gross profit of 11.2 million euros and cash position is 24,4 million euros
if jumia thinks a part of its brand(jumia house) wont be profitable in the nearest future and feels like it can sustain on advert revenue alone,then it has the right to sell it. that is how businesses are run,you concentrate /leverage on the business with the largest market share or the one you think that might be profitable in the nearest future
This is not the first time rocket internet has sold part of its business for Shit and i believe it shouldn’t be news at all or something that should be taken seriously at all.
Bros, I feel you’re the one thinking for Jumia not other guys here, you’re just making assumptions on their behalf saying they did this bcos of this, who told u? just forget it, it obvious they are moving out one step at a time
i am not assuming,if you follow rocket internet history,they are a very aggressive company investment wise,they are builders of companies and not innovators,they bet and take high risk and they sell or close companies that they think will not be profitable in the nearest future.what they are doing is de-consolidation of subsidiaries and write-offs of worthless subsidiaries in the companies
They have sold companies before it started. e.g Asasa.com (india),they have also written off companies in africa e.g 5rooms,Mizado,Sabunta. Worldwide e.g Bamarang,Cardagram,Pinspire,Emeza
rocket internet parent company of Jumia has many profitable brands in europe ,south america and middle east one of the profitable brand is Global Fashion Group .
despite a challenging macroeconomic environment, they have narrowed down on losses and are looking to be on a proftable track soon
The slowdown in growth makes a lot of sense in cases where you want to make sure you’re growing in a sustainable way
I think most people are overacting,the future is bright for both rocket internet and jumia.
Rocket Internet has €1.7b cash and cash equivalents on its balance sheet, €420m that it manages as part of its ECP fund and another €650 in Global Founders Capital. Together the Samwer brothers control €2.8b.
Where did you get those figures from? It is well known that Jumia has never made a profit
I am not on anyone’s case, it’s plain for all to see that this is a terribly executed startup. I don’t care what the vision is, $120m annual losses in Africa is negligence
funny enough,sensational news sell more than actual fact
the financial year isnt ended and jumia hasnt published it H2 of its financial report for 2017 but you have written off jumia as a company that will make loss of 120 million dollars because you got it from businessdailyafrica,when you check online you will see different figures and laugh
Jumia is a transparent company and all available data are online publicly for all to see.
lets try to verify our claim before posting misleading information on radar.
All the reports you’ve linked confirm the devastating losses I mentioned. You were the one saying that they have made 30 million Euros last year and 11 million Euros profit this year. You substantiate your profit claims.
men dude,i was highlighting the different losses and figure posted by different tech websites and how ridiculous they are
when the h2 in the financial report comes out then we can talk actual fact
the figure i posted above where all in their jumia financial document they are financial facts not some website news
Link or attach that purported Jumia fianancial document then and shut me up once and for all.