Mastercard is set to invest EUR50 million in Jumia Technologies through a private placement ahead of the Africa-focused ecommerce firm's upcoming initial public offering, according to Bloomberg.
Mastercard's investment comes after French drink maker Pernod Ricard paid EUR75 million for a 5.1% stake in Jumia in December, valuing the Amazon-style outfit at EUR1.4 billion.
Jumia, which was founded by French entrepreneurs and now claims four million users across 14 African countries, is preparing to sell American Depositary Shares in New York in an IPO that could raise $216 million.
As part of its investment, Mastercard will partner with Jumia to help the firm expand operations in a move that should also help the payments giant increase its presence in Africa.