German investment firm, Rocket Internet, sells off stake in Jumia

by | Apr 3, 2020

German technology investment group, Rocket Internet, has sold off its remaining stake in Africa’s largest eCommerce firm, Jumia, according to reports by Reuters. This comes almost a year after the company’s IPO on the New York stock exchange and a month after its financial earning reports for 2019.

In 2016, one of the earliest signs of an exit plan could be surmised when its African subsidiary, Africa Internet Group (AIG), placed all of its African portfolios under the Jumia umbrella viz. Jumia Food, Jumia Travel etc.


Suggested Read: So Jumia wants to completely take over?


As of 2019, with a 40% stake, MTN was the company’s largest shareholder. Jumia’s initial public offering (IPO) in 2019 appeared to be a good exit plan for MTN and other pre-IPO investors like Rocket Internet and MasterCard amidst losses being recorded by the eCommerce giants. Usually, an IPO exit can place after a share lockdown period of six months.

Advertisement

However, what seemed like a good plan might have hit a few roadblocks given Jumia’s repeated losses, and its dismal showing on the New York stock exchange (NYSE)

Though Jumia listed on the NYSE to resounding success, a Citron research by short-seller, Andrew Left, sent its shares tumbling down and it has continued to go downhill since then.


Suggested Read: Jumia lost $2.6bn market cap within 6 months; a look at the bumpy ride


While declining to pin down a specific date, Bettina Curtze, Rocket Internet’s head of finance and investments, reportedly stated that the company held an 11% stake in Jumia, as of  November 8 2019, but it sold off its stake between that time and the onset of the coronavirus crisis.

While the details of the sale’s proceeds were not revealed, Rocket Internet reportedly insisted that they took part in the 2.1 billion euros ($2.3 billion) of the net cash Jumia had as of March 31.

Initially founded in 2012 as Kasuwa (Market in the Hausa language), by Sacha Poignonecc,  Jeremy Hodara, Tunde Kehinde and Rafael Kofi Afaedor, Jumia was backed by the likes of Rocket Internet, MTN and Millicom.

In 2016, Jumia secured over €300 million of funding from Rocket Internet, MTN, AXA, Goldman Sachs, Orange and CDC.

It has since secured other investments from the companies like Pernod Ricard and MasterCard in 2018 and 2019 respectively.

Advertisement

Since last year, Jumia has appeared to be trimming down its size with an exit from some African markets and has been leaning more towards its payment platform, JumiaPay which has been recording really good numbers since its rollout.

Currently trading at $2.82 per share, Jumia is now valued at $215 million, far removed from its lofty heights of $48 per share and a valuation of $3.14 billion in April 2019.

DON’T MISS OUT!
Techpoint Digest
A daily 5-minute roundup of happenings in African and global tech, sent directly to your email inbox, between 5 a.m. and 7 a.m (WAT) every week day!
Stay Updated
Give it a try, you can unsubscribe anytime. Privacy Policy.
Senior Reporter at | Website

Writer and Narrator.  Tech, business and policy analysis is my daily bread.

Looking to chat? Catch up with me, @eruskkii, on Twitter or send a mail to emmanuel@techpoint.africa

Techpoint Build 2021 is here! Be part of the largest gathering of innovators, startup founders, thinkers, programmers, policymakers, and investors in West Africa. Register free now.

Subscribe
Notify of
guest
0 Comments
Inline Feedbacks
View all comments

Recent News

I wasn’t expecting this

I wasn’t expecting this

Today on #TechpointDigest, @OnomeOneyibo discusses #WorldFoodDay, PaySika’s $350 pre-seed, and several other things tech.

DON’T MISS OUT!
Techpoint Digest
A daily 5-minute roundup of happenings in African and global tech, sent directly to your email inbox, between 5 a.m. and 7 a.m (WAT) every week day!
Stay Updated
Give it a try, you can unsubscribe anytime. Privacy Policy.
close-link

Subscribe to Techpoint Digest!

A daily 5-minute roundup of happenings in African and global tech, sent directly to your email inbox, between 5 a.m. and 7 a.m (WAT) every week day!

Please check your email to confirm your subscription.

Subscribe to Crypto Explorer

A monthly series featuring in-depth analysis on the cryptocurrency sector in Africa

Please check your email to confirm your subscription.

Subscribe to The Experts

A bi-weekly where tech career specialists take us on their journey from newbie to expert, and how they became successful in the industry.

Please check your email to confirm your subscription.

Subscribe to Founder's Table

A monthly series, where we catch up with founders in the startup ecosystem, learn about their failures, successes and a few tricks of the trade

Please check your email to confirm your subscription.

Copy link
Powered by Social Snap