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Tag: Jumia

  • Jumia Nigeria to expand, consolidate-warehouses into one depot

    Jumia Nigeria to expand, consolidate-warehouses into one depot

    To increase profits in the Nigerian market, e-commerce giant Jumia Technologies AG plans to merge all three warehouses into a single 30,000-square-metre facility in Lagos.

    Chief Executive Officer Francis Dufay stated in a recent interview that a critical step in Jumia’s pursuit of profitability is the company’s consolidation initiative, driven primarily by a concerted effort to cut costs.

    Nigeria, the most populous country on the continent, is the centre of attention here because of the gamble that its macroeconomic situation is temporary. In the medium to long run, Jumia anticipates a turnaround in Nigeria.

    As he announced recently, Dufay intends to increase the company’s market presence by expanding its services to more cities across the West African nation of Nigeria. Financials have kept highlighting the problems with Jumia’s profitability story despite the company’s lofty goals.

    Read also: Twiga Foods Announces Jumia’s Charles Ballard as New CEO

    How Jumia intends to meet up with Nigeria’s economy

    The company’s operating loss for the first quarter of the year was $8.33 million, while revenue increased slightly to $48.9 million, a 5.7% increase.

    This performance highlights an ugly truth: Jumia’s share price has dropped about 90% from its peak during the e-commerce boom caused by the pandemic.

    Despite the economic slump in Nigeria, Jumia is optimistic about the country’s future thanks to government programmes that will hopefully reduce inflation and encourage international investment.

    The firm is unwavering in its resolve to consolidate its market presence in the face of persistent obstacles like currency devaluation and infrastructure deficiencies.

    Jumia has introduced a buy-now-pay-later financing option to conserve its cash reserves and enhance customer accessibility strategically.

    “We are also very reactive in pricing,” confirms Dufay.

    Jumia is redoubling its efforts in Nigeria and navigating the complex economic waters. The company’s strategic calculations carefully balance risk and opportunity, demonstrating its determination to find profitability in Africa’s biggest economy. 

    Read also: Jumia Food abandons Nigeria, other African countries

    Other steps Jumia has taken

    After shedding some weight in 2023 through layoffs and discontinuing unprofitable businesses, Dufay said Jumia is now a much leaner, more agile, and more focused company to achieve its goals for 2024.

    As part of its efforts to streamline operations, Jumia cut the number of managers in Dubai by 60% in Q42022. The company also terminated over 900 positions across 11 markets, affecting 20% of the workforce.

    As of December 2023, Jumia Food, the company’s meal delivery service, would no longer operate. According to the company, the operating environment and prevalent macroeconomic circumstances in the seven markets—Nigeria, Kenya, Uganda, Morocco, Tunisia, Algeria, and Ivory Coast—did not suit the company’s food delivery business. Jumia Food will thus be defunct in these markets by the end of the month. 

    Despite the challenges, Junia seems determined to keep exploring alternatives and striving in the market.

  • Twiga Foods Announces Jumia’s Charles Ballard as New CEO

    Twiga Foods Announces Jumia’s Charles Ballard as New CEO

    Nairobi-based agritech company Twiga Foods has named Charles Ballard its new CEO, starting May 1.

    In his new job, Charles Ballard, a well-known figure in e-commerce, brings much knowledge from working in retail and financial services.

    With a lot of experience in the company, he comes to Twiga Foods from Jumia Kenya, where he was CEO most recently. Leading roles included Senior Vice President-Commercial, Chief Operating Officer, and Head of Performance & Planning.

    Read also: Jumia appoints Sunil Natraj as new CEO for Nigeria

    Charles Ballard’s previous role before Jumia 

    Charles was a researcher at Sagaci Research before he joined Jumia in 2019. He worked on retail and e-commerce projects in more than 15 African countries. 

    In addition, he was the deputy chief financial officer at ACTED, a humanitarian NGO that worked in 40 low-income countries around the world. Charles started his work in Mergers & Acquisitions. He learned a lot in Paris and Hong Kong.

    A Master’s degree from the ESSEC Business School in France and a BSc in International Development from the London School of Economics (UoL/LSE) in the UK are two exciting things about him.

    Chairman addresses Twiga Foods New CEO 

    “We are delighted to welcome Charles as our new Chief Executive. His deep understanding of the Kenyan e-commerce and retail landscape, his proven operational grip, his entrepreneurial drive, and his passion for the Twiga Foods opportunity make him the ideal leader to steer Twiga into its next phase of growth and success,” Hein Pretorius, Chairman of Twiga’s board of directors, said.

    Ballard’s hiring comes when Twiga Foods wants to improve Kenya’s farming industry. For the company’s future growth, his knowledge of e-commerce and African markets will be put to good use.

    Twiga said Ballard has worked in e-commerce, retail, and banking services for more than 15 years, with nine of those years spent in the Kenyan market.

    Supported by Twiga’s other senior leaders, he will be in charge of all parts of the company’s business. This will help Kenya’s biggest agri-tech company reach its goal of changing food supply chains in Africa.

    Read also: Jumia Food abandons Nigeria, other African countries

    In 2013, he and Grant Brooke started the business-to-business (B2B) marketplace. After quitting as CEO, he left the board of directors in January, letting foreign investors run the business.

    After he quit, he said he would be taking a six-month break after “an intense 2023” to focus on personal issues.

    The event happened after cloud services provider Incentro Africa sued Twiga for $261,878 (Ksh.35 million at current exchange rates) in unpaid bills. The case was later settled for a stated $35 million (Ksh.4.7 billion) round.

    Because of a rough year for the company in 2023, it fired over a third of its staff in August.

  • Jumia Food abandons Nigeria, other African countries

    Jumia Food abandons Nigeria, other African countries

    Jumia, one of the biggest online stores in Africa, has announced that it will shut down its food delivery service, Jumia Food, in seven countries by the end of 2023. 

    These countries are Nigeria, Kenya, Morocco, Ivory Coast, Tunisia, Uganda, and Algeria.

    As of right now, the company is planning to focus on improving its main online shopping business and spreading the Jumia Pay platform to all 11 countries where it does business.

    The CEO of Jumia, Francis Dufay, said, “The more we focus on our physical goods business, the more we realize that there is huge potential for Jumia to grow with a way to make money.”

    It’s essential that we make the right choice and put all of our management, teams, and money into going after this chance. At the moment, it means giving up a business line that we don’t think has as much room for growth: food delivery.

    Because Jumia Food has been having trouble making money since the beginning, even though it added 11% of Jumia’s gross merchandise value (GMV) between January and September 2023, the company is changing its strategy.

    Although Jumia Food experienced substantial growth in 2021—an 82% year-over-year rise—quarterly active customers and orders dropped in 2023, forcing the company to rethink its operational goals.

    On a mission to become profitable, Jumia is slashing costs by laying off workers, pulling everyday food items from its stores, and cutting back on delivery services unrelated to its online business. Therefore, when Jumia Food closes, many workers will move to the core retail segment, which could mean layoffs.

    Read also: Bolt Food exits Nigeria with 5% market share

    Jumia Food joins the growing food delivery market trend

    Jumia’s move follows a more significant trend, as Bolt Food, a prominent African food delivery company, has left Nigeria and South Africa due to economic downturns, high inflation, and fierce competition.

    Barcelona-based startup Glovo is strengthening its roots in Sub-Saharan Africa through innovative collaborations with famous restaurant chains despite financial challenges operating in 25 locations with $1 billion in capital.

    Chowdeck, another Nigerian meal delivery company, has achieved a milestone of delivering over ₦‎1 billion ($1.2 million) in a month, highlighting its increased market share.

    From 2023 to 2028, the African food delivery business will rise by 12.2%, creating opportunities and difficulties. Growth potential exists through partnerships and technological integration, but profitability is still challenging.

    Jumia Food’s exit and others are complicating the sector, but Glovo and Chowdeck are showing the way to a new path.

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    To achieve profitability, Jumia has slashed costs, reduced its workforce, and focused on profitable e-commerce categories.

    Jumia, the first African-focused internet business listed on the New York Stock Exchange, recalibrated to show how the African tech environment is changing and how sustainable growth is still pursued.

    Jumia Nigeria CEO Massimiliano Spalazzi resigned yesterday. In a Lagos media presentation, the business announced the departure. Before the pandemic, Massimiliano became CEO in January 2020 and led the company through tough times.

  • Jumia appoints Sunil Natraj as new CEO for Nigeria

    Jumia appoints Sunil Natraj as new CEO for Nigeria

    Sunil Natraj has been named as the new Chief Executive Officer for Nigeria by Jumia. The company released a statement stating Sunil Natraj’s appointment will take effect on January 1st, 2024. 

    Massimiliano Spalazzi, who is leaving the company with effect from December 31, 2023, will hand off the reins to the new CEO. 

    Francis Dufay, CEO of Jumia Group, commented on the departure of Massimiliano Spalazzi and congratulated the new CEO, saying,

    “After 11 years since the founding of Jumia, we would like to express our profound gratitude and send Massi our best wishes as he leaves our teams. We send Sunil our best wishes for success in this new endeavor.

    Read also: Jumia cuts spending after losing $15 million in 2023

    About the New CEO

    After joining Jumia in 2022, Mr Sunil managed the Jumia Express logistics company while serving as Vice President of Sales and Marketing from Lagos, Nigeria. He later became CEO of Jumia Ghana. 

    Sunil spent more than 11 years working for brands like GBFoods and others in the FMCG industry throughout Africa before joining Jumia.

    He had been employed by sizable food-producing multinational corporations with operations in Europe and Africa for more than ten years, mostly based in Ghana. With an MBA from The Indian Institute of Management Calcutta, Sunil works as an IT engineer. 

    He graduated from The Indian Institute of Management Calcutta with an MBA and a B.S. in engineering.

    Musk’s Starlink hits Nigeria and Kenya with Jumia.

    Upon accepting the position, Mr Sunil stated, “I’m excited to lead Jumia in Nigeria, one of our biggest markets, and to help e-commerce transform Africa’s economy.”

    As we prioritize customer satisfaction, secure payments, and strong partnerships, it is an honour to contribute to Jumia’s national success.

    We will continue to grow and gain the trust of our clients because of our committed staff, which is the key to our success in the future.

  • Jumia cuts spending after losing $15 million in 2023

    Jumia cuts spending after losing $15 million in 2023

    Jumia lost $15 million in adjusted EBITDA in the third quarter of 2023, which was a big step forward for the most significant online store. 

    This was a significant drop from losing $32 million in the third quarter of 2022. It’s clear from the significant drop of 67% from one year to the next that the company is moving its attention to things that will make it more money.

    The minor loss is an intentional move to make the business more successful and effective.

    Because of Jumia’s strategic moves, its cash dropped significantly. There was a $19 million drop in Q3 2023, 71% less than the $66 million drop the year before. It also costs 74% less to sell things and advertise, coming in at $4.3 million in Q3 2023. This proves the business wants to spend money wisely on marketing.

    In many ways, Jumia saw big drops after this financial change. Sales are down 11% yearly, and active users are down 24.3%. Orders are also down 23%. To adjust its product line, Jumia has stopped offering some services in places it thinks are having tough economic times. For example, these numbers show how those steps look.

    High inflation and limits on imports significantly affect the company’s overall success, which is going down. Usage and order numbers have also decreased compared to the last quarter, especially in Q3. This is because of seasonal impacts.

    Read also: JumiaPay records 37.8% decline in transactions, gross profit grows by 5%

    Big jump in Jumia’s GMV

    From Q2 to Q3 2023, monthly usage dropped by 100,000 due to seasonal factors such as extended holidays and back-to-school spending. This movement touched fashion, beauty, electronics, and home & lifestyle.

    Even with these obstacles, CEO Francis Dufay reports a 10% constant currency gain in physical goods GMV across five nations.

    From Q2 to Q3 2023, orders increased 11%, primarily due to airtime promotions, according to Dufay. Only 1% of physical product orders fell quarter-over-quarter.

    Dufay’s focus on key business divisions and physical goods GMV growth in five nations is consistent. He mentioned Ghana, Uganda, Senegal, and two unnamed countries growing. These nations contribute 49% of Jumia’s physical goods GMV.

    “This quarter, we’re still improving profitability and cash preservation. Witnessing our growth strategy’s impact across countries is crucial since we can now share it.

    We are pleased to see growth in five nations with more efficient economies, demonstrating our successful strategy and inspiring others to follow suit.

    Trove Finance, JumiaPay Nigeria simplify investing

    Partnerships and core companies

    GMV for physical products fell 17% in actual dollars but rose 10% in constant currency. A strategic move toward sustainable growth was seen in improved average order value and repurchase rates in phones, electronics, home living, fashion, and beauty.

    Jumia’s cooperation with Starlink and focus on being a preferred distributor for multinational companies reflect a strategic commitment to product diversification and market expansion, particularly in Africa.

    The stock rose 7.5% as investors gained confidence in Jumia’s updated outlook for adjusted EBITDA losses of $80-90 million, a 57% to 61% year-over-year decline. This updated prognosis suggests a rebound and supports the company’s financial sustainability.

    In the competitive e-commerce industry, Jumia’s strategic relationships and efforts to balance growth and profitability indicate a transitional phase toward resilience and long-term sustainability.

  • Trove Finance, JumiaPay Nigeria simplify investing

    Trove Finance, JumiaPay Nigeria simplify investing

    Trove Finance, a Nigerian investment platform, and JumiaPay, a digital payments and fintech platform, have announced a partnership.

    This partnership enables Trove’s customers to leverage JumiaPay to fund their investment accounts, providing a seamless and convenient way to manage their investments.

    Due to JumiaPay’s integration as a payment partner, Trove customers can now fund their investment accounts more easily without having to exit the app or sign in to another website.

    The CEO of Trove, Oluwatomi Solanke, said, “We’re happy to work with JumiaPay to make it easier for our customers to fund investments. We think that by working together, we will be able to give our users a more convenient, safe, and smooth experience while investing in our platform.”

    The company says that users can now make investments easily with just a few clicks. Customers can also set up recurring investments through Trove’s connection with JumiaPay, which gives them more control over their investment journey.

    Read also: Jumia Nigeria Announces 2023 Tech Week

    JumiaPay offers rapid payment solutions

    JumiaPay is a Payment Solutions Service Provider (PSSP) licensed by the Central Bank of Nigeria. It works with businesses to make payments easier, faster, and safer. It also helps companies grow by giving them free add-ons for marketing and visibility.

    The partnership is a big step forward for both companies because Trove can use Jumia Pays large customer base to get more exposure, and JumiaPay can offer investment funding, which is important for Nigerians who want to build their wealth through investments.

    Customers of JumiaPay would also be able to use the Trove ecosystem without leaving the JumiaPay website. A rise in Trove’s online reach and more value for people who use JumiaPay.

    “Our goal at JumiaPay is to make payments simpler, faster, and safer for everyone. We’re happy to work with Trove to make it easy for Nigerians to invest.” This partnership shows that we are committed to giving our customers a full financial ecosystem,” said Adedamola Giwa, managing director of JumiaPay Nigeria.

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    About Trove Finance


    Trove Finance, a financial app, was established in 2018. Using the app, Nigerians can make micro investments in financial instruments anywhere in the world. Users of the programme can invest in bonds, cryptocurrencies, and stock markets, including those for Chinese, US, and Nigerian equities.

    Trove Finance simplifies the process of buying and selling stocks by establishing a connection between the users’ respective bank records.

    Trove Finance is a big help with all of these problems. It gives Nigerians more freedom and lets people trade in stock markets like the NSE, NYSE, Nasdaq, and even the Shanghai Stock Exchange.

    With as little as N1,000, Nigerians, both the rich and the middle class, can invest in global stock markets with ease.

    Trove Finance works with a number of companies, such as Paystack, Verve, 213 Capital, Visa, and Mastercard, to ensure market access. Importantly, the app works with Sigma Stocks Limited, a company that is registered with the SEC and a member of the NSE, to let people trade stocks.

  • Jumia Nigeria Announces 2023 Tech Week

    Jumia Nigeria Announces 2023 Tech Week

    The leading pan-African e-commerce platform, Jumia, has announced the launch of its annual “Tech Week” campaign. This campaign is an initiative that is aimed at providing consumers access to authentic technological devices such as mobile phones and accessories, TVs, computers, cameras, video games, and a great deal more.

    The Tech Week campaign began on the 20th of March and is to last till the 2nd of April. During this time, consumers all over the country will have the opportunity to save money while upgrading their technological devices to more recent models from well-known brands such as Weyon, Nexus, Xiaomi, Oraimo, Samsung, Tecno, Infinix, Edifier, Haier Thermocool, Scanfrost, and Binatone, amongst others.

    Read also: Investors reconsider shares investment in Jumia stocks

    Remarks from the Executives

    Partainning the event, Massimiliano Spalazzi, CEO, Jumia Nigeria said, “We believe that everyone should have access to quality products at competitive prices, and we are committed to making this a reality. By partnering with leading brands to provide our consumers with access to the latest tech devices, we hope to help bridge the digital divide and empower more people to achieve their full potential. Consumers can be sure to have their tech needs met during this campaign. At Jumia, we remain committed to providing the best shopping experience to our consumers across the country.” 

    Alex Liu, E-Commerce Operation Manager, Oraimo Technology Limited said, “Oraimo is delighted to partner with Jumia for this year’s Tech Week. We believe that this partnership is of great significance as it enables us to showcase our innovative and cutting-edge mobile accessories and lifestyle offerings to a wider audience in Nigeria. As a leading e-commerce platform committed to delivering quality products and excellent customer service, Jumia is the perfect partner for oraimo.”

    “Through this collaboration, we are determined to bring amazing offers and deals to our customers and ensure that they have access to our high-quality products. We are excited to work alongside Jumia to provide our customers with a seamless shopping experience and build a lasting relationship with them. Together, we are committed to delivering the best products and services to our customers, and we look forward to a successful partnership with Jumia,” he added.

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    What to know about Jumia

    Jumia is of the opinion that the use of technology in day-to-day living in Africa has the ability to bring about positive changes. Jumia was developed to facilitate easier access for customers to millions of products and services at the most competitive prices, as well as to provide sellers with a new channel through which they can connect with customers and expand their companies.

    In 2019, Jumia became the first African e-commerce company to be listed on the New York Stock Exchange (NYSE). The company is currently active in 11 African nations. A marketplace, a logistics service that facilitates the shipment and delivery of packages from sellers to consumers, and a payment service called JumiaPay, which provides a secure and user-friendly solution to facilitate online payment transactions, are the three components that make up the Jumia platform. The marketplace brings together consumers and sellers to facilitate commerce. 

    The company sells products in a wide variety of categories, including cell phones and other electronic devices, household appliances, quick-moving consumer items, as well as fashion and beauty products. In 2022, the company had more than eight million consumers and made more than one million dollars in Gross Merchandise Value (GMV).

  • Investors reconsider shares investment in Jumia stocks

    Investors reconsider shares investment in Jumia stocks

    Baillie Gifford, an asset management company based in Edinburgh known for its propensity for pre-IPO digital businesses, has cut its shares in African e-commerce giant Jumia.

    Approximately 9.39% of Jumia is owned by Baillie Gifford, which holds 18.75 million shares. The asset management company owned 10.06% of the company at the time of the most recent filing that Jumia made, which was done a year ago. They reported having 19.85 million shares. That equates to a fall in shares of 5.50% and a decrease in ownership of 0.67%.

    The Scotland-based asset management company, which is well into its second century of operation, has been an early investor of notable private and public technology businesses such as Amazon, Google, Salesforce, Tesla, Airbnb, Spotify, Lyft, Palantir, and SpaceX. It has also participated in business transactions in other regions, such as China’s Alibaba and NIO, as well as those involving the online companies Naspers and Jumia, which are situated in Africa.

    Read also: African Ecommerce Giant, Jumia, To Reduce Staff And Product Offerings

    Baillie Gifford’s investment in Jumia

    In 2019, Baillie Gifford made a purchase of Jumia shares, which was three years after the e-commerce behemoth had gone public. Since that time, the Scottish mortgage trust company, which is Jumia’s largest institutional investor, has sold and repurchased a portion of its shares every January. The most recent transaction, which occurred just recently, resulted in the most significant drop in share price that the company has ever experienced. The investment firm Baillie Gifford is still the company with the most shares in the e-commerce platform.

    Losses in Jumia

    After several years of reporting losses, in November of 2022, Jumia made changes to its management. Francis Dufay was installed as acting CEO to replace co-founders Sacha Poignonnec and Jeremy Hodara, who resigned from their roles as co-CEOs. This followed several years of Jumia reporting losses. This decision resulted in immediate cuts across a variety of product lines as well as redundancies, including the termination of a few executives based at the company’s Dubai office. All of this is being done in an effort to track down the profits that have eluded the corporation.

    The African e-tailer made significant headway in cutting its losses during the third quarter of 2022, bringing them down by 13% from $52.5 million to $45.5 million, which was the lowest amount in the past six quarters. In spite of these advancements, there is a general perception that public confidence in the e-commerce company has decreased. Following the announcements made on Wednesday, the price of Jumia’s stock dropped to $3.88 per share; the company currently trades for slightly above $4 and has a market valuation of $404 million. In the previous year, the share price of Jumia fell by 51%. The online retailer finished the third quarter with a total liquidity position of $284.7 million, of which there was a total of $104.3 million in cash and cash equivalents on hand.

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    It is possible that the success that Jumia has had on the exchange played a role in Baillie Gifford’s decision to sell some of its shares. On the other hand, it could be the investment firm’s way of cutting back on the escalating losses it began to incur last year, notably around growth stocks, which have taken huge hits in the face of increasing interest rates and recession fears, the investment group admitted 2022 was a “humbling year” after it lost with over $14 billion on stakes in Tesla and Shopify, according to Financial Times. In any case, it could be the investment firm’s way of cutting back on the mounting losses it began to incur last year. However, this does not explain why the fund firm, which manages over 230 billion dollars in assets under management (AUM), raised its position in other companies that are losing money this past week, such as the Chinese electric vehicle manufacturer NIO and Wix.com. The following month’s scheduled earnings conference for Jumia should provide additional insight into the problem.

    However, it is not all doom and gloom for Jumia as other large shareholders, such as D. E. Shaw, Goldman Sachs, and Bank of America, chose a new path and enhanced their shares in the company, owning 2.21%, 1.27%, and 1.40%, respectively, according to Nasdaq. Other large shareholders increased their holdings in the company.

  • African Ecommerce Giant, Jumia, To Reduce Staff And Product Offerings

    African Ecommerce Giant, Jumia, To Reduce Staff And Product Offerings

    Jumia, an African e-commerce company, reported $50.5 million in sales for the third quarter of this year, although engaged customers and the service values sold both increased significantly. In comparison to the previous year, operating losses fell (33%), while gross profit climbed (29%). These findings were released just one week after the company’s co-CEOs announced their resignations, prompting some industry analysts to question the company’s plans.

    However, Jumia co-founders Sacha Poignonnec and Jeremy Hodara quit as co-CEOs recently, barely 10 days before the third-quarter 2022 financial report. As a result, at the end of their term, a fresh face — Francis Dufay, the ex-chief of Jumia Ivory Coast and now interim CEO of Jumia — took leadership of the investor briefing for the first time.

    Read also: Jumia Shares Rise After A Tough First Quarter

    The New Management

    According to the company, the findings demonstrate its progress toward profitability, and it will cease services that are incompatible with that goal.

    This decrease in losses is due to a significant fall in marketing costs in the form of sales and advertising expenses, which decreased 31.5% year over year from $24 million to $16.4 million, and an improved monetization plan, which saw gross profit climb by 29.2% over the same period.

    Dufay was quick to point out during the call the reasons the supervisory board of the e-commerce giant decided to bring in new management, highlighting the need for more deliberate execution and a return to the fundamentals of e-commerce if Jumia was to turn a profit after five years of consecutive losses on the NYSE (as Africa’s first publicly traded company).

    One of the programs being pulled out is Jumia Prime, an Amazon Prime-like loyalty program that promises limitless free shipping on all orders. Jumia announced it as a prototype in 3 Nigerian cities in June 2019 for 2,999 naira ($7) per month. It was eventually expanded to Egypt, Kenya, Egypt, Côte d’Ivoire, Ghana, Uganda, Tunisia, and Senegal. The idea behind Jumia Prime was that potential loyal consumers would want to pay a recurring subscription fee rather than pay different shipping costs for every order.

    However, according to its results presentation (pdf), the company now believes that internet commerce in Africa is “too early in the adoption curve” for that product and will instead focus on knowing how to make customers repeat purchasers.

    “We want to significantly improve our unit economics and create the right fundamentals for long-term growth. In the past, we’ve seen a lot of growth as a function of marketing, and promotional events, which then, as a consequence, lead to the alteration of our economics,” Dufay mentioned in an interview on Jumia’s new strategy. “This is not the way we want the future. And we believe that we have lots of success cases across our countries that show that we can grow and improve economics simultaneously.”

    Dufay stated that he wants Jumia to be a more appealing platform for third-party suppliers to sell on. Jumia intends to achieve this by abandoning old monetization shortcuts such as increasing commissions for sellers’ services (for example, it charges 20-25% for fashion items and 5-10% for technology items). Instead, the company hopes to earn new revenue by providing value-added services such as advertising solutions and expanding its local supply of items.

    Jumia, Zipline Partner To Launch Drone Package Delivery In Ghana

    Reducing the Team in Dubai

    “We intend to drive more staff costs savings and are implementing headcount reductions in several areas of the business,” the company stated in a section covering general and administrative expenses.

    Aside from product cuts, Jumia’s report with the US Securities and Exchange Commission (SEC) mentions a continuing layoff exercise.

    The affected positions tend to be based in Jumia’s Dubai office, where its officials typically work. More of the company’s senior management would relocate to Africa to be closer to the market, according to Dufay during the call.

  • Jeremy Hodara And Sacha Poignonnec Resign as Co-CEOs of Jumia

    Jeremy Hodara And Sacha Poignonnec Resign as Co-CEOs of Jumia

    Jeremy Hodara and Sacha Poignonnec, the co-founders of Jumia, have resigned from their roles as co-CEOs of the massive African e-commerce company.

    Jumia, the largest eCommerce company in Africa, has announced several management changes, including the establishment of a new management board and the resignation of co-founders Jeremy Hodara and Sacha Poignonnec as co-CEOs.

    Since Jumia’s founding in 2012, Hodara and Poignonnec have been in charge. During their tenure, the firm has grown to include 11 countries, been listed on the New York Stock Exchange in 2019, and developed a logistics and payments division.

    The supervisory board has named Francis Dufay as interim CEO while the search for a new CEO is ongoing. Dufay, who has been with Jumia since 2014, has held a number of top leadership positions, most recently serving as executive vice president of Africa and managing the company’s e-commerce operations in Africa. Like Hodara and Poignonnec, Dufay worked at the international consulting company Mckinsey before joining Jumia in 2014.

    Antoine Maillet-Mezeray, who was formerly the group CFO of Jumia, has also been elevated by the supervisory board to executive vice president of finance and operations. The corporation will make numerous other senior management changes over the next few months, of which these are the first. 

    Read also: Jumia, Zipline Partner To Launch Drone Package Delivery In Ghana

    On its Q3 results call for November 17, 2022, the company will share more details on this announcement and its business priorities.

    According to the statement, Mailet-Mezeray and Dufay have been given the goal of “cutting operating losses and establishing the business on a clear route to profitability, including tighter cost discipline, focused monetization activities, and a more simple and efficient organisation.”

    Challenges Jumia Has Faced

    Since its establishment, Jumia has experienced losses of $57.2 million, as reported in its 2022 second-quarter report.

    Jonathan Klein, Chairman of the Supervisory Board, said in the statement: “As we look ahead to the next chapter of Jumia’s journey, we want to bring more focus to the core e-commerce business as part of a more simplified and efficient organization with stronger fundamentals and a clearer path to profitability.” 

    Even as it consistently cuts its losses, the corporation has always expressed a desire to turn a profit. However, it is unclear when that will happen.

    Poignonnec stated in an interview following the release of its Q2 earnings reports that “there is not a silver bullet that can instantly make it profitable.”

    Jumia Shares Rise After A Tough First Quarter

    Some Background on Jumia

    In 2012, Jumia was introduced in Nigeria before being launched in Egypt, Morocco, Ivory Coast, Kenya, and South Africa. By 2018, the corporation had offices in 14 African nations after opening offices in Tunisia, Tanzania, Ghana, Cameroon, Algeria, and Uganda in 2014.

    Since Jumia began operating more than ten years ago, it has been listed on the New York Stock Exchange. Its main online store, JumiaPay, as well as the company’s payment solutions segment, marketplace, and shipping company, are among its products.

    The company, one of the most backed African startups ever, has raised over $885 million over six fundraising rounds in the last seven years. Although it was established in Lagos in 2012, its wide geographic reach has allowed it to transcend its Nigerian origins and become a truly pan-African brand.

    Jumia has always pursued lofty goals, earning a staggering $45 million in a series A round in 2012 that Rocket Internet coordinated, Blakeney Management, and Millicom Systems. Then, a year after it began operations, it sucked in $150 million in a Series B investment.

    The cause of the management-level restructuring at the company hadn’t been made public as of the time of reporting.