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Sunday, 5 April 2020

Jumia Nigeria In Flimflam Scandal

The problem with Jumia: The company has been confronted with challenges and allegations since listing its shares. These range from claims that  the company deceived its investors, to accusations that it doctored its books. All these have led to a class-action lawsuit.
Although the company’s shares had soared to $14.50 after listing on the New York Stock Exchange, it now trades at $2.82. If anything, this is a clear indication that there is trouble in paradise.
German-based technology company, Rocket Internet, has sold off its stakes  in Jumia, as the African eCommerce firm’s shares continue to decline on the New York Stock Exchange.
Rocket Internet’s Head of Finance and Investments, Bettina Curtze, disclosed that the tech investor sold its 11% stake in Jumia around November 8, 2019.
Jumia’s shares have been on the decline since its unusual initial public offering last April. The declining share price has been blamed on an unflattering report by short-seller, Andrew Left of Citron Research, which opened a series of allegations against the company.
While Rocket Internet did not reveal the exact amount it generated from the sale, it stated that the proceeds were included in the €2.1 billion ($2.30 billion) net cash the company had as of March 31.
It should be noted that Rocket Internet is known for listing and selling its stake in Startups.

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