Rocket Internet, the German tech investor behind Jumia, Africa’s largest E-Commerce platform has sold its remaining stake on the firm.
Rocket Internet held an 11% stake on Jumia as of 8th Nov 2019. The sale was communicated though Bettina Curtze, the firm’s head of finance and investments without revealing what Rocket Internet made from the sale, but said they were included in the (2.1 billion euros) US$2.30 billion of net cash the company had as of March 31.
Jumia’s shares began trading at US$14.50 at the New York Stock Exchange in April 2019 and one point, soared up more than three times its IPO launch price to U$49.77 but later tumbled when Citron Research’s Andrew Left released a report describing the company as a “fraud” with worthless stock.
The report cited various discrepancies between Jumia’s confidential investor presentation from October 2018 that was being used to market to investors late last year and the presentation they did to the Securities Exchange Commission before the IPO. The report also highlighted high levels of systemic fraud at the corporate level.
While there are speculations that the company could go private, Jumia has been on a restructuring mode in the continent closing several business units having suspended its E-Commerce business in Cameroon, Tanzania and Rwanda.
The firm also offloaded its Jumia Travel unit to Travelstart, an online flight-booking platform that operates mainly in Nigeria and South Africa.
In its first full-year results post-NYSE IPO, Jumia posted 2019 revenues of (US$172.8 million) €160 million, representing growth of 24% over 2018 but the company’s losses widened by 34% in 2019 to US$246.1 (€227.9 million).
Jumia shares are currently trading at US$2.89 (At the time of publishing)