South Africa’s MTN Group has now exited its 18.9% stake in Africa’s largest online retailer Jumia raking US$142.31 million in net proceeds.
In August this year, MTN announced plans to sell part or all of its US$243 million interest in Jumia as it aimed at simplifying its portfolio over the next three to five years.
The telecommunications giant has now fully exited its 18.9% investment in Jumia
“We are proud to have been a partner in the evolution of one of Africa’s pioneering online marketplace businesses and will continue our relationship with Jumia through ongoing operational partnerships in some markets,” MTN said in a statement.
Earlier this year, Rocket Internet, the German tech investor behind Jumia, sold its 11% remaining stake on the firm.
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.
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 has reported a Gross profit after Fulfillment expense reaching a record €2.5 million in its first Quarter 2020 results. This was a record growth compared to less than €0.1 million in the first quarter of 2019.
The company 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.
(€1 = US$1.17)