MasterCard has expressed its intention to invest $56 Million (€50 Million) in Jumia Technologies, the Berlin-based online retailer with over 4 million customers in 14 African Countries. This is ahead of the company's Initial Public Offering (IPO) on the New York Stock Exchange, according to a report by Bloomberg.
As part of the collaboration between the two companies, MasterCard has also signed a new partnership to help Jumia grow its operations and transforming Africa’s digital payments landscape beyond their current. MasterCard “has been rapidly expanding its presence and partnerships in Africa, bringing new technologies,” said Elcin Yanik, a marketing executive with MasterCard.
“We are delighted to strengthen our existing partnership with MasterCard and consolidate Jumia’s position as the leading e-commerce platform in Africa. This investment highlights the strategic synergies between the two companies, as we both seek to develop the payments ecosystem and drive financial inclusion across Africa,” co-CEO, Jumia, Sacha Poignonnec, said in a press statement.
MasterCard will join other investors such as MTN Group, Rocket Internet, and the French drink maker Pernod Ricard - which bought a 5.1 percent stake in Jumia for 75 million euros late last year.
Jumia is selling 13,500,000 ADS (American Depositary Shares) at $13 and $16, and they could potentially net as much as $216 million from the IPO.