As the stock of e-commerce company jumia (NYSE:JUMA) has been soaring by more than 3,000% in the last year, two things are at the top of TechCrunch’s minds: What made the stock soar and will it end its years of losses? We got in touch with co-CEO Jeremy Hodara to discuss these two questions and some of the challenges the company has faced over the years masstamilan.
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Jumia’s financials highlight accelerating usage growth
The online marketplace posted strong percentage gains across all of its usage KPIs — orders, annual active customers and gross merchandise volume, or GMV. This, according to Jumia, is driven by a strong underlying momentum in fashion and fast-moving consumer goods (FCMGs), whose orders and GMV grew 180% and 28%, respectively, during the quarter myvuhub.
In addition, the company reported that its fast-growing grocery sub-category has continued to gain traction in Africa. The category posted a 180% year-over-year expansion in Q1 2022, which Jumia says is supported by the momentum of its new q-commerce initiative.
This, in turn, will help the company achieve profitability — something it has been struggling with for several years. Nevertheless, the company’s management has continued to focus on cost-cutting measures in order to reduce its losses and pursue profitability more aggressively teachertn.
Currently, Jumia’s cost structure is centered around the e-commerce platform and its logistics service. These two operations are used to ship items from sellers to buyers. Additionally, the e-commerce platform also offers a payment service that allows users to pay for purchases on its website or app.
The TPV of the digital payments arm, which Jumia renamed JumiaPay in 2022, has grown significantly. In the fourth quarter of 2021, the TPV reached $90.5 million, which is an increase of 29% from the previous quarter pagalsongs.
However, even after this TPV boost, the company’s losses have increased by 107% in the first nine months of 2022. That said, the CEO and co-CEOs of Jumia, Sacha Poignonnec and Jeremy Hodara, have told TechCrunch that their goal is to limit losses to no more than $70 million in 2022.
In order to do so, he and Hodara have decided to scale back the company’s food delivery services in markets such as Egypt, Algeria, Ghana, Senegal and Tunisia. This will allow the company to invest in a better-quality logistics operation that will help it deliver more packages per client.
As Jumia moves forward, it will continue to make it easier for people in Africa to buy and sell goods online. With a growing number of Africans now online, the company is pursuing a strategy to connect them with consumers, thereby helping them to grow their businesses and develop more quickly yareel.
With a goal of connecting millions of people and helping them to do business online, Kene is determined to make a difference for the continent. He believes that technology companies like Jumia can play a critical role in advancing development and creating job opportunities in African countries.
