German tech investor, Rocket Internet, has sold its 11% stake in Africa e-commerce platform, Jumia.
Although the company did not reveal how much they made from the sale, Bettina Curtze, the firm’s head of finance and investments, reiterates that the proceeds were included in the $2.30 billion of net cash the company had as of 31st March 2020.
In April last year, Jumia had its Initial Public Offering (IPO) on the New York Stock Exchange. The IPO saw the company offer 13.5 million shares thus raising $196 million at $14.50 per share. On the first day of trading, the stock rallied 75% closing at $25.46 a pop.
However, after that, amid speculations of fraud, its shares fell steadily, with the retail giant downsizing its e-commerce business, exiting some African countries and scaling down in others.
Rocket Internet is a European Internet Company whose headquarters are in Berlin, Germany. It builds online startups and owns shareholdings in various models of internet retail businesses.