Sunday, January 23, 2022

Citron Research publishes ‘smoking gun’ calling Jumia an ‘Obvious Fraud’

“In 18 years of publishing, Citron has never seen such an obvious fraud as Jumia.” These are the opening words of Citron Research’s 12 page PowerPoint Presentation which is linked down below. This is what has led to the close to 20% fall in share price as this information becomes public.

Jumia is the biggest e-commerce company in Africa, and just a few weeks ago, they went public on the New York Stock Exchange amid lots of praise including being called the ‘Amazon of Africa’. You’ll remember just after going live, there was much talk about how African the company really was given that it is French owned, German Registered and only hires devs from Portugal. The CEO had an interview where he said the company doesn’t employ African developers because ‘there’s not enough development and developers in Africa’.

Given that Jumia has operated in Africa for a while now, setting up shop in many African countries, many people believed that them going public was a great pointer at the great potential for e-commerce in Africa. This remains true though despite the damming report that claims inflated active customer and merchant numbers, and non-delivered orders.

A few weeks before the IPO, Jumia revelead that it lost at least Sh 118 million in the last two years due to consumer cyber fraud and a robbery. This was done in their filing to the US Securities and Exchange Commission (SEC) which may now have to investigate them for fraud given the report by Citron.

Citron is reporting that over 41% of orders were returned, not delivered, or cancelled. A fact the company failed to include in thei F-1 filing. Instead, Jumia disclosed that “orders accounting for 14.4% of our GMV were either failed deliveries or returned by our consumers” in 2018.

The report also says Jumia’s corportate fraud is well documented by local Nigerian newspapers. And that the systemic fraud starts all the way from the top with Jumia Co-CEO, Jeremy Hodara citing extremely questionable related party transactions.

Jumia’s future now seems unclear as the Citron Report believes there’s more that will be un-earthed when the SEC fully investigates the company.

Here’s Citron’s Full Report.

6,091FansLike
2,889FollowersFollow
16,100SubscribersSubscribe

Leave a Reply

Dickson Otienohttps://tech-ish.com
I love reading emails when bored. I am joking. But do send them to editor@tech-ish.com.

More to read:

Severus launches limited edition “African Hero” NFT collection

The NFT collection depicts the North African, Septimius Severus(AD145 - AD211)  during his reign as the Roman emperor from AD193 to AD211

ByBit launches NFT Market place

The NFT Marketplace, ByBit promises, is set to become a one-stop shop that will bring together artists, creators and collectors.

Samsung Kenya bets on Online Shopping in new partnership

Samsung has gotten into a partnership with BrandCart Limited to launch an online shop offering deliveries across Kenya

Pitch your Web App in Nairobi and Win up to $50,000

Startups in the blockchain and crypto space are invited to apply for the Sankore Pitch Competition Tour in Nairobi this January.

OPPO A16K and OPPO A55 officially launched in Kenya

OPPO has officially launched the OPPO A16K and the OPPO A55 in Kenya. The OPPO A16K costs KES 20,000 while the OPPO A55 costs KES 26,000.

Netflix increases prices in US & Canada

Netflix has announced increased subscription fees in the United States and Canada in what appears to now be annual expected change.