We recently featured Jumia as the first African e-commerce company to be listed on the New York Stock Exchange (NYSE). Never mind that the Africaness of the company is in doubt, given it was registered in Germany and virtually everyone in top management is not an African.
It is now emerging that prior to being listed on the NYSE, the company engaged in a lot of fraudulent practices. That is according to a 12-page report by Citron Research, the stock commentary website.
In the report, Citron alleges that Jumia inflated its numbers prior to the US bourse listing. Something that was done in the backdrop of key investors leaving Jumia.
Take, for instance, the Confidential Presentation of October 2018, where Jumia indicated it has at least 2.1 million active customers. However, those figures were inflated to 2.7 million in its public reports.
In the same report, Jumia indicated it has 43,000 merchants, but in the public report, that figure was inflated to 53,000. The report by Citron Research reads in part:
“At the end of 2018, Jumia had a year’s worth of cash left and its two largest shareholders, MTN …read more
Read more here:: Citron Research calls out Jumia for being a Fake and a Fraudster