{"id":173,"date":"2020-04-27T20:02:42","date_gmt":"2020-04-27T20:02:42","guid":{"rendered":"https:\/\/ancstockinvestments.com\/blog\/?p=173"},"modified":"2020-04-27T20:02:45","modified_gmt":"2020-04-27T20:02:45","slug":"the-exit-of-jumias-major-investor-rocket-internet","status":"publish","type":"post","link":"https:\/\/ancstockinvestments.com\/blog\/2020\/04\/27\/the-exit-of-jumias-major-investor-rocket-internet\/","title":{"rendered":"The  Exit of JUMIA\u2019S Major investor Rocket Internet !"},"content":{"rendered":"\n<p> The German technology investment group, Rocket Internet, has sold off its shareholding of the largest eCommerce firm in Africa JUMIA. Being one of the main investor with a share holding of 11%, this move  has given its other investors pause for concern. <\/p>\n\n\n\n<figure class=\"wp-block-image size-large\"><img decoding=\"async\" width=\"1024\" height=\"722\" data-src=\"https:\/\/ancstockinvestments.com\/blog\/wp-content\/uploads\/2020\/04\/ANC-StartUp-Accelerator-2020-1024x722.jpg\" alt=\"\" class=\"wp-image-178 lazyload\" data-srcset=\"https:\/\/ancstockinvestments.com\/blog\/wp-content\/uploads\/2020\/04\/ANC-StartUp-Accelerator-2020-1024x722.jpg 1024w, https:\/\/ancstockinvestments.com\/blog\/wp-content\/uploads\/2020\/04\/ANC-StartUp-Accelerator-2020-300x211.jpg 300w, https:\/\/ancstockinvestments.com\/blog\/wp-content\/uploads\/2020\/04\/ANC-StartUp-Accelerator-2020-768x541.jpg 768w, https:\/\/ancstockinvestments.com\/blog\/wp-content\/uploads\/2020\/04\/ANC-StartUp-Accelerator-2020.jpg 1080w\" data-sizes=\"(max-width: 1024px) 100vw, 1024px\" src=\"data:image\/svg+xml;base64,PHN2ZyB3aWR0aD0iMSIgaGVpZ2h0PSIxIiB4bWxucz0iaHR0cDovL3d3dy53My5vcmcvMjAwMC9zdmciPjwvc3ZnPg==\" style=\"--smush-placeholder-width: 1024px; --smush-placeholder-aspect-ratio: 1024\/722;\" \/><figcaption>Take your Startup to the next Level with ANC Start-Up Accelerator.<\/figcaption><\/figure>\n\n\n\n<p>\u00a0<a rel=\"noreferrer noopener\" href=\"https:\/\/www.culturebanx.com\/cbx-daily\/2020\/4\/23\/africas-failed-unicorn-jumia-hemorrhages-millions\" target=\"_blank\">CultureBanx<\/a>\u00a0noted that Mastercard initially invested\u00a0<a rel=\"noreferrer noopener\" href=\"https:\/\/www.bloomberg.com\/news\/articles\/2019-04-01\/mastercard-to-become-investor-in-african-online-retailer-jumia\" target=\"_blank\">$56 million in Jumia\u2019s private stock sale<\/a>\u00a0ahead of the IPO, which is now only worth around $5.2 million. Not to mention Citron Research called out the company during its first post-IPO earnings report in 2019, with claims of fraud and \u201cmaterial discrepancies\u201d in its S1 filing. Just a few months later Jumia disclosed it had wrongly inflated its order volume by around $17.5 million due to some fraudulent orders, even though executives stated they had no impact on financial statements.\u00a0<\/p>\n\n\n\n<p> As of 2019, with a 40% stake, MTN was the company\u2019s largest shareholder. Jumia\u2019s initial public offering (IPO) in 2019 appeared to be\u00a0<a href=\"https:\/\/techpoint.africa\/2019\/02\/14\/jumia-nyse-listing\/\">a good exit plan<\/a>\u00a0for 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. <\/p>\n\n\n\n<figure class=\"wp-block-image size-large\"><img decoding=\"async\" width=\"1024\" height=\"314\" data-src=\"https:\/\/ancstockinvestments.com\/blog\/wp-content\/uploads\/2020\/04\/anc-banner-buy-sell-hold-1-1024x314.jpg\" alt=\"\" class=\"wp-image-176 lazyload\" data-srcset=\"https:\/\/ancstockinvestments.com\/blog\/wp-content\/uploads\/2020\/04\/anc-banner-buy-sell-hold-1-1024x314.jpg 1024w, https:\/\/ancstockinvestments.com\/blog\/wp-content\/uploads\/2020\/04\/anc-banner-buy-sell-hold-1-300x92.jpg 300w, https:\/\/ancstockinvestments.com\/blog\/wp-content\/uploads\/2020\/04\/anc-banner-buy-sell-hold-1-768x235.jpg 768w, https:\/\/ancstockinvestments.com\/blog\/wp-content\/uploads\/2020\/04\/anc-banner-buy-sell-hold-1-1200x368.jpg 1200w, https:\/\/ancstockinvestments.com\/blog\/wp-content\/uploads\/2020\/04\/anc-banner-buy-sell-hold-1.jpg 1440w\" data-sizes=\"(max-width: 1024px) 100vw, 1024px\" src=\"data:image\/svg+xml;base64,PHN2ZyB3aWR0aD0iMSIgaGVpZ2h0PSIxIiB4bWxucz0iaHR0cDovL3d3dy53My5vcmcvMjAwMC9zdmciPjwvc3ZnPg==\" style=\"--smush-placeholder-width: 1024px; --smush-placeholder-aspect-ratio: 1024\/314;\" \/><figcaption>Start your trading Journey today with ANC Stock Investment Ltd.<\/figcaption><\/figure>\n\n\n\n<p>However, what seemed like a good plan might have hit a few roadblocks given&nbsp;<a href=\"https:\/\/techpoint.africa\/2020\/02\/26\/jumiapay-2019-jumia-financial\/\">Jumia\u2019s repeated losses<\/a>, and its dismal showing on the New York stock exchange (NYSE)<\/p>\n\n\n\n<p>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.<\/p>\n\n\n\n<p><\/p>\n\n\n\n<p>The e-commerce giant has told investors it has a target of attaining profitability by 2022, which now seems completely out of reach. In Q4 2019, the company lost $66 million, bringing its total operating&nbsp;<a href=\"https:\/\/qz.com\/africa\/1834923\/jumia-africas-amazons-huge-losses-since-a-billion-dollar-ipo\/\" target=\"_blank\" rel=\"noreferrer noopener\">loss for that year up to $247 million<\/a>. Investor appetite remains questionable considering the company\u2019s persistent financial losses in its core markets. Jumia has seen its stock price decline steeply down more than 85%.<\/p>\n\n\n\n<figure class=\"wp-block-image size-large\"><img decoding=\"async\" width=\"364\" height=\"138\" data-src=\"https:\/\/ancstockinvestments.com\/blog\/wp-content\/uploads\/2020\/04\/download-1.jpg\" alt=\"\" class=\"wp-image-177 lazyload\" data-srcset=\"https:\/\/ancstockinvestments.com\/blog\/wp-content\/uploads\/2020\/04\/download-1.jpg 364w, https:\/\/ancstockinvestments.com\/blog\/wp-content\/uploads\/2020\/04\/download-1-300x114.jpg 300w\" data-sizes=\"(max-width: 364px) 100vw, 364px\" src=\"data:image\/svg+xml;base64,PHN2ZyB3aWR0aD0iMSIgaGVpZ2h0PSIxIiB4bWxucz0iaHR0cDovL3d3dy53My5vcmcvMjAwMC9zdmciPjwvc3ZnPg==\" style=\"--smush-placeholder-width: 364px; --smush-placeholder-aspect-ratio: 364\/138;\" \/><figcaption>Start with ANC Stock Investment Ltd.<\/figcaption><\/figure>\n\n\n\n<p> It wasn\u2019t always gloom and doom for Africa\u2019s former\u00a0unicorn.There\u00a0were some things working in Jumia\u2019s favor, as it raised $196 million through its IPO, and on the initial opening day of trading it closed up 75%. Also, the company counted more than 81,000 active merchants and over 4 million active consumers in 2019. <\/p>\n\n\n\n<p> Jumia\u2019s struggles across African markets on the path to profitability haven\u2019t gone unnoticed, primarily because building an e-commerce operation at scale in countries with less developed logistics and transport infrastructure is hard and expensive. African countries are highly fragmented and have underdeveloped digital payments capabilities. Additionally, many African countries have high import tariffs with a limited ability for locally sourced products, which increases the cost of running an e-commerce business. They\u2019ve since shuttered operations in Rwanda, Tanzania and Cameroon in the last six months. <\/p>\n","protected":false},"excerpt":{"rendered":"<p>The German technology investment group, Rocket Internet, has sold off its shareholding of the largest eCommerce firm in Africa JUMIA. [&hellip;]<\/p>\n","protected":false},"author":2,"featured_media":174,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"content-type":"","inline_featured_image":false,"_jetpack_memberships_contains_paid_content":false,"footnotes":""},"categories":[10],"tags":[],"series":[],"ppma_author":[464],"class_list":["post-173","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-stock"],"yoast_head":"<!-- This site is optimized with the Yoast SEO plugin v25.9 - https:\/\/yoast.com\/wordpress\/plugins\/seo\/ -->\n<title>The Exit of JUMIA\u2019S Major investor Rocket Internet ! - ANC Blog<\/title>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/ancstockinvestments.com\/blog\/2020\/04\/27\/the-exit-of-jumias-major-investor-rocket-internet\/\" \/>\n<meta property=\"og:locale\" content=\"en_US\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"The Exit of JUMIA\u2019S Major investor Rocket Internet ! - ANC Blog\" \/>\n<meta property=\"og:description\" content=\"The German technology investment group, Rocket Internet, has sold off its shareholding of the largest eCommerce firm in Africa JUMIA. 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