It is worth noting before every news and report that we are living in unprecedented times of the Coronavirus pandemic and half of the world is currently under lockdown meaning that people can’t go outside their houses to work, shop or even do basic things.
However, everyone knows that it is done for their safety and that’s why they are following the things done by the authorities quite well. On the other hand, we also know that this will cause devastation in the economy and many businesses are said to go out of money very soon if help is not provided to them.
Talking about the fact of businesses going out, we might have our first big casualty regarding the COVID-19 situation. This is because a new report from Africa reveals that African e-commerce firm Jumia has lost a big investor. Rocket Internet, who had a big stake in the e-commerce firm, has now sold off their stake from the company.
A spokesperson for Rocket Internet said that they held 11% stake in Jumia as of Nov. 8, sold its holding between then and the onset of the coronavirus crisis. While they have not revealed any more details regarding why they sold off the stakes, it is believed that the decline in business due to COVID-19 could be the main reason.
Now that Jumia has lost one of its high-profile investors in Rocket Internet, there are reports that the company which listed on Wall Street to become the first company from Africa to do so last year, will go private soon. However, there is no confirmation regarding the same from Jumia’s stakeholders or the company itself. On the other hand, Jumia’s sales figures have also been questioned by their competitors. Now, this can definitely be seen as a big blow to Africa’s e-commerce space.