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Jumia Insiders Get First Chance to Cut Losses

  • Pre-IPO shareholders including MTN, Goldman sitting on losses
  • ‘Amazon of Africa’ has suffered after short-selling report
A Jumia distribution center in Lagos.
A Jumia distribution center in Lagos.Photographer: George Osodi/Bloomberg
Updated on

Early investors in Jumia Technologies AG including MTN Group Ltd. and Goldman Sachs Group Inc. face a stark choice: Cash out or stick with the Africa-focused e-commerce group after a troubled six months.

MTN, Africa’s biggest wireless carrier, led investors backing the Berlin-based company ahead of an initial public offering in New York in April. German startup incubator Rocket Internet SE, French drinks maker Pernod Ricard SA, Goldman and Mastercard Inc. also bought stakes. All are likely to have been prevented from selling stock for 180 days, according to a lock-in clause that expires on Wednesday.