Nigerian Tech Company, Zinox set to acquire Jumia
By Dayo Badmus,
Billionaire Leo Stan Ekeh led Zinox Technologies is set to acquire Jumia as the former’s shares price dips.
The shares price of Jumia, Africa’s e-commerce behemoth, slumped 11.32 percent to $4.78 on Wednesday as investors fled the IT companies’ stocks amid a market sell-off that has devoured US markets.
Jumia’s stock has dropped 60% YTD and 81 percent from its year high, bringing its market capitalization to roughly $477 million.
Jumia went public in 2019 at a $14.5 share price and increased to $65 in February 2021, valuing the company at $6.2 billion at the time.
The collapse of Jumia has fueled suspicion that Konga owners, Zinox Group owned by billionaire Leo Stan Ekeh is moving for total acquisition of the company.
A potential takeover of Jumia by Zinox emanated on Wednesday evening.
Reports from Nigeria’s Tech Ecosystem has it that billionaire Leo Stan Ekeh, Chairman of the Zinox Group has been scooping Jumia shares, implying that a possible takeover could be in the works if the time arises.
“He is recreating the same technique that he successfully utilized in acquiring Yes Mobile, and more recently, Konga,” a formidable competitor of Jumia, this is according to a source close to Mr. Ekeh.
Konga was acquired by Zinox in 2018, when the company was on the verge of bankruptcy due to severe competition from Jumia and other e-commerce competitors.
Konga quickly picked up form and after Leo Stan Ekeh’s magic touch, a substantial drop in operation costs, reorganization, and adoption of a drastic change in its business strategy.
According to sources at Zinox, Konga was losing roughly ₦400million each month prior to the acquisition.
According to a reputable source, Zinox had previously spent considerably in technology and logistics, as well as ₦4billion in infrastructure.
Konga has been buying warehouses all throughout the country in order to meet client demand by combining online and physical sales.
When asked to clarify the probable acquisition, Gideon Ayogu, Zinox Group’s Head of Corporate Communications, claimed that “nothing positive is impossible,” refusing to confirm or reject Mr. Ekeh’s intention to acquire Jumia.
