MTN Group sells stake in Jumia
MTN Group has sold all its stake in Jumia Group, bringing its seven-year investment journey in the e-commerce venture to an end.
According to a 3rd Quarter financial statement from MTN Group, the move to exit from dealings with Jumia is part of the company’s “realization program”
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‘As part of its asset realisation programme, MTN Group completed its exit from its 18,9% investment in e-commerce venture Jumia as well as the localisation of an 8% shareholding in MTN Zambia, realizing net proceeds of approximately R2,3 billion and R204 million respectively,” the financial statement reads in part.
MTN filed the exit from Jumia group with the New York Stock Exchange.
“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.
MTN’s exit was first announced in August 2020, but it did not actualise until this month.
Jumia became the first African tech company to list on the New York Stock Exchange but overtime has been on a down road spiral, taking an even bigger hit due to the COVID-19 pandemic.
However, in March 2020 German technology investment group, Rocket Internet, sold off its stake in Jumia and there was a sudden rise in stock by at least 142%.
In August 2020, MTN announced it was withdrawing its stake in Jumia, causing yet another tumble in stock for the Group.
The Journey of Jumia
In 2012, Rocket Internet launched Africa Internet Group (AIG), Jumia Nigeria and Hellofood.
In 2013, AIG launched sub businesses; Lamudi, Kaymu and Everjobs before rebranding all their e-commerce flagships to one brand dubbed Jumia.
In 2017, Jumia started posting losses across businesses and consequently shut down operations in different countries including; Rwanda, Tanzania and Cameroon.
Out of the 53 African states, Jumia was only operational in 12, by November 2018.
Last year, AIG rebranded to Jumia and listed on the New York Stock Exchange becoming the first African tech company to do so.
In November 2020, MTN Group announced exit from its 18,9% investment in e-commerce venture Jumia
