Citigroup Global Markets Inc., an investment bank for Jumia Technologies, has responded to fraud allegations levelled against the e-commerce company by a research firm, Citron Research.
Citi Group in its analysis of the allegation said claims by Citron were manipulated and recommended that Jumia make more disclosure of its performance.
The investment bank said it had become necessary to address the issues in view of the 50 per cent fall in the share price of Jumia at the New York Stock exchange and investors’ concerns over the validity of the allegations.
Citron had accused the e-commerce company of falsifying figures in its filings at the stock exchange.
Citron research analysts led by its Founder, Andrew Left, had claimed a document called ‘Confidential Investor Presentation’ published by Jumia in October 2018, which was used for marking the company before the IPO, contained key financial metrics that were different from the Jumia filing with the NYSE.