Jumia is a Scam -Exposed

General
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[SIZE=7]Jumia’s Share Price Drops In the Aftermath of Cintron Research’s Proclaiming It Fraud[/SIZE]

Nina Zdinjak
Insider Monkey•May 10, 2019

Every now then, various frauds (that are probably all around us) get revealed. This seems to be the case with recently went public Jumia Technologies AG (NYSE:JMIA), which has been slammed in Citron Research’s newly published report on the stock that unveils the truth about the company with the aim of protecting US Investors. Namely, Citron Research’s Andrew Left said that “Jumia is the worst abuse of the IPO system since the Chinese RTO fraud boom almost a decade ago”.
For those who are not familiar with the stock, Jumia Technologies AG (JMIA) is a pan-African e-commerce platform that mainly sells consumer electronic products. It went public on the New York Stock Exchange and started trading on April 12th with a price of $25.46. Its initial price started climbing and soon hit its highest mark on May 1st when it reached $46.99, which represented an increase of 84.56%.
[caption id=“attachment_575832” align=“aligncenter” width=“750”] Image By peshkov - Adobe Stock[/caption]
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Jumia’s Share Price Drops In the Aftermath of Cintron Research’s Proclaiming It Fraud
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Then, Citron Research’s’ report on the stock, which presents “SMOKING GUN” to prove the equity is actually “WORTHLESS”, got traction and the consequences were seen soon. In the report, Citron Research examines “material discrepancies” between Jumia’s confidential investor presentation (published in October 2018) that was allegedly the company’s last try to collect money and its F-1 filing with the SEC from last month. Citron writes that there are many material changes in its crucial financial metrics between these two documents, which represents “SECURITIES FRAUD”. Among those inconsistencies were: 20-30% overblown active consumers and active merchants figures; avoiding to report in its F-1 filing the data about 41% of returned orders (not delivered, or canceled). The last one indicates that almost 30% of all orders were canceled last year, which is unacceptable for this type of company, making it smell like a fraud.
The fund further writes that Nigerian media have already covered “the systematic fraud at Jumia” being more familiar with the company’s activities and history than Citron is, citing the following: “Jumia is ‘sitting on gun powder which might explode any moment as the retail outfit is filled with many shady deals’”.
The consequences of Citron’s report are best seen in the stock’s price recent decline - since May 1st, when it reached its highest price ($46.99), until today, Jumia’s stock lost 42.78%, having a closing price on May 9th of $26.89.
Disclosure: None. This article is originally published at Insider Monkey.

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This is irrelevant

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but are they still selling household items,alcohol, boxers and shiet?

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They do not have the finances to sustain their operations. The company has been running on borrowed money.

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Is being broke equivalent to being a scam?

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Jumia has never been serious. It takes customer experience for granted. Communicating with is very very annoying

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Jumis pan-African. It is owned by Germans.

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Nongwe wewe, read the full report from Citron ‘’

In 18 years of publishing, [SIZE=7]Citron has never seen such an obvious fraud as Jumia. [/SIZE]As the media in the US is naively anointing Jumia the “Amazon of Africa”, the media in its home country of Nigeria has a plethora of articles discussing the widespread fraud in this Nigerian company. Not even that elusive Nigerian prince can cover this one up.

What do you do when you’re on the verge of bankruptcy, your largest shareholders won’t fund you anymore, and your closest competitor just got sold at a fire sale valuation? You fudge the numbers and hope that you can dump stock onto US investors. At the end of 2018, [SIZE=6]Jumia had a year’s worth of cash left and its two largest shareholders, MTN and Rocket Internet, wanted an exit. [/SIZE]Therefore, Jumia filed for an IPO in March 2019, fudged its numbers, and began trading last month. This is where the fraud begins…

rom 2015 to 2018, Jumia made little progress in its core business. While mobile penetration has soared in the core markets, the Company’s revenue declined from $145 million to $131 million while adjusted EBITDA loss went from $161 million to $150 million. Jumia learned the hard way that Nigeria, Jumia’s largest and most important market, is not an easy place to do ecommerce for plenty of reasons including [SIZE=6]logistics, poverty, and a culture of corruption. [/SIZE]

In order to raise more money from investors, Jumia inflated its active consumers and active [SIZE=7]merchants figures by 20-30% (FRAUD). [/SIZE]The most disturbing disclosure that Jumia removed from its [SIZE=5]F-1 filing was that 41% of orders were returned[/SIZE], not delivered, or cancelled. This was previously disclosed in the Company’s October 2018 confidential investor presentation. This number is so alarming that is screams fraudulent activities.

The systemic fraud at Jumia had not been overlooked by local Nigerian newspapers as they articulate the issue clearer than Citron can. An investigation by Nigerian news reporters described Jumia as follows:
• “Cuts a picture of a fast-growing e-commerce company” but “beneath what is painted is a company struggling to survive over internal fraudulent activities”
• Jumia is “sitting on gun powder which might explode any moment as the retail outfit is filled with many shady deals” https://www.societyreelnews.com/multiple-frauds-rocks-jumia-nigeria-details-of-howtop-directors-uses-personal-coy-to-defraud-the-online-retail-outfit/ 7

Recent Fraud Shows Jumia is a Ticking Time Bomb Jumia pays commissions to a sales force of Nigerians that place orders for other people using their ID numbers, Jforce Consultants. Sales through Jforce Consultants account for 30-40% of net merchandise value for Jumia. Last month, Jumia amended its F-1 and added language that Jumia “recently received information alleging that some of our independent sales consultants, members of our JForce program in Nigeria, may have engaged in fraudulent activities.” This language was missing from the original F-1 from just a month earlier. This means that either
[SIZE=5]1) Jumia just found out about this historical fraud, [/SIZE]
[SIZE=5]2) this is a new fraud that will affect future financials, or
3) Jumia has been hiding the fraud for quite some time but going public forced their lawyers to add this language.
[/SIZE]

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[SIZE=6]ATLAST Wamepatikana ![/SIZE] …

JUMIA has never been a serious company …am happy they’ve been exposed

…the fact that jumia is owned by two frenchmen and the company is registered in germany is an insult to AFRICA … I hope they burn fast and dissappear …shenzi sana !

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They should go but not interfere with Jumia Food,they come in handy in delivering alcohol and food for us bachelors

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Jumia is a scam and here is more proof
https://www.jumia.co.ke/warranty-cp/
You would think the warranty page would be without issues but that is not the case. They don’t want to be clear because they can’t have people suing them.
I would rather spend more at LG shop than risk my money at fake Jumia

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Ubereats ndio napenda

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I don’t think uber eats wana selection ya alcohol kama Jumia foods,huko unapata Champagne to different Whiskeys,Wines etc,Uber eats has better foods selection,wakitoa hizi delivery services watatumaliza sisi mabachelor