Jumia Technologies AG
TypePublic
NYSE: JMIA
IndustryE-commerce, Internet, Retail, Marketplace, Payment, Logistics
Founded2012 (2012)
Lagos, Nigeria.
FoundersJérémy Hodara, Sacha Poignonnec, Tunde Kehinde, Raphael Kofi Afaedor
Key people
  • Francis Dufay (CEO)
  • Antoine Maillet-Mezeray (Executive VP, Finance & Operations)
Number of employees
4,000
Websitegroup.jumia.com

Jumia is a Pan-African technology company that is built around a marketplace, logistics service and payment service. The logistics service enables the delivery of packages through a network of local partners while the payment services facilitate the payments of online transactions within Jumia’s ecosystem.[1] It has partnered with more than 100,000 active sellers[2] and individuals and it competes at various levels, indirectly with retailers such as Jiji and Maybrands limited, and is a direct competitor to Konga in Nigeria, and Amazon and Noon in Egypt.[3]

History

In 2012, Jeremy Hodara[4] and Sacha Poignonnec,[5] ex-McKinsey consultants, founded Jumia along with Tunde Kehinde and Raphael Kofi Afaedor.[6]

Jumia was launched in Nigeria in 2012 and expanded to five other countries: Egypt,[7] Morocco, Ivory Coast, Kenya and South Africa. In 2014, the company launched offices in Tunisia, Tanzania , Ghana , Cameroon , Algeria and Uganda , and by 2018 it was present in 14 African countries.[8] In Egypt, Jumia has been trying to categorize itself as one of the leading e-commerce websites.[9]

In June 2013, Jumia launched Jumia Travel, a hotel booking platform, and Jumia Food, a food delivery platform.[10] Jumia Deals was launched in April 2015. In 2017, Jumia launched Jumia One,[11] an app that enables customers to pay bills such as airtime. The same year, Jumia launched JumiaPay,[12] a secure payment for people to shop on all Jumia services. This was followed by the Jumia lending program,[13] an initiative that allows its vendors to access business loans.

In South Africa, Jumia operates under the brand name Zando (zando.co.za),[14] focusing only on online fashion retail.

At the end of 2015, the founders of Jumia appointed Juliet Anammah as the CEO of Jumia Nigeria so that they could concentrate on global control of the company.[15] Massimiliano Spalazzi took over from Juliet as CEO in Nigeria in January 2020 and Juliet was appointed as the chairwoman of Jumia Nigeria and the Head of Institutional Affairs, Africa.[16]

In 2015, Jumia generated $234 million in revenue, which stands for a 265% growth from 2014.[17] In 2016, Jumia became the continent’s first unicorn being valued over 1 billion USD.[18] In late November 2018, Jumia partnered with cryptocurrency company Telcoin to enhance payment service capabilities throughout their areas of operation.[19] The same month, Jumia and Carrefour signed a partnership to sell online products in Africa.[20]

In April 2019, Jumia went public on the New York Stock Exchange (NYSE) and raised $196 million in net proceeds.[21] The share price, initially offered at $14.50, rose more than 200% in the first three trading sessions.[22] The first analyst papers release 21 days after the IPO rated the company at stock targets between 27 and 40 USD.[23] After reaching a peak of nearly $50 on 1 May 2019, the share value has declined to under $5/share by year's end.[24]

In November 2019, Jumia announced the suspension of its e-commerce operations in Cameroon effective on 18 November as the company concluded that its transactional portal is currently not suitable to the current environment in Cameroon.[25] As part of the portfolio optimization effort, Jumia later ceased operations in Tanzania effective on 27 November 2019.[26] While Jumia operations in Tanzania provided many opportunities for customers and vendors, the company said it needed to focus its resources on other markets that can bring the best value and help Jumia thrive. The decision, the company affirmed, would help it achieve greater success in the future.[27] On 9 December 2019, Jumia suspended Jumia Food in Rwanda, making it the 3rd country in two months as part of a continuous monitoring of the business environment and operating costs in the markets in which it operates.[28] Jumia, however, vowed to continue doing business online in those countries on the classifieds portals, previously called Jumia Deals.[29]

On 9 December 2019, Travelstart entered into a distribution and commercial agreement with Jumia Travel, Jumia’s hotel booking platform, to power the latter’s pan-African online travel booking portal.[30] Under the agreement, Travelstart took control of the sales, fulfilment and customer service aspects of Jumia Travel online booking websites in all its operating territories.[31]

In 2020, Jumia experienced a shift in shopping habits across its markets in Africa as more shoppers bought everyday products as opposed to electronics. Shopping for essentials such as foodstuff, fashion and beauty products saw Jumia’s total sales value of Fast-Moving Consumer Goods grow by 13 percentage points last year, from 44% in 2019, according to the Jumia Africa E-commerce Index 2021. [32]

In 2020, Jumia ranked 7th among the top 10 influential brands in Egypt.[33]

In 2021, Jumia launched its technology centre in Egypt to provide its services to the Egyptian market as well as Africa at large.[34]

COVID-19 accelerated the growth of e-commerce and digital entrepreneurship in Africa and more women have embraced digital business.[35] On the Jumia platform, over a third of businesses in Côte d'Ivoire and over half in Kenya and Nigeria are owned by women according to IFC.[36]

In November 2022, Jumia announced leadership changes to support its journey towards profitability with the appointment of a new Management Board and Acting CEO, while Jeremy Hodara and Sacha Poignonnec, Co-CEOs, resigned from their roles. [37] The Supervisory Board appointed Francis Dufay as Acting CEO and elevated Antoine Maillet-Mezeray to Executive Vice President Finance & Operations. [38]

In February 2023, the Supervisory Board appointed Francis Dufay as CEO after spending three months as acting CEO of Jumia.[39] The company is focused on making “radical changes” around better cost management and building the right fundamentals for growth as well as penetration outside of capital cities, i.e. smaller cities close to rural areas.[40]

In November 2023, Jumia delivered a strong Q3 2023 on losses reduction and cash management with Adjusted EBITDA loss reached $14.9m, down by 67% YoY and Operating loss $18.5m, down by 57% YoY.[41] Jumia saw a Year-over-Year increase in GMV of physical goods in five countries, which shows evident that its new strategy is working.[42]

In December 2023, Jumia announced plans to discontinue food delivery across seven markets, shifts focus to expanding physical goods business.[43] The decision is in line with its strategy to optimize its capital and resource allocation and to continue its path to profitability.[44]

Partnerships

On 16 March 2020, Jumia announced a major partnership with Reckitt Benckiser, a global health products manufacturer, to provide a steady supply of hygiene products at affordable pricing and help hamper the spread of the Coronavirus.[45][46]

In May 2020, The United Nations Development Programme (UNDP) in partnership with Jumia Uganda, launched an online platform to enable small and medium enterprises to connect with consumers to sustain livelihoods in view of restrictions on movement, stay at home measures and social distancing guidelines which were instituted as part of the measures to curtail further transmission of the novel coronavirus (COVID-19) pandemic.[47]

In September 2020, the Moroccan Ministry of handicrafts teamed up with Jumia to help artisans sell their products online and alleviate the impact of the coronavirus pandemic, which affected the craft industry and other sectors of the economy of the North African Kingdom.[48]

In December 2020, Jumia announced a partnership with Egypt Post to boost and develop e-commerce trade flows and industry in Egypt.[49]

In December 2021, UNICEF and Jumia partnered to help Giga connect schools in Africa to the Internet and every young person to information, opportunity, and choice.[50]

In February 2022, Jumia announced a partnership with LocQar, a smart locker company, to bring online deliveries closer to its consumers in Ghana, ensuring that customers who order items on Jumia get to pick up their packages quicker, safer and conveniently.[51]

In September 2022, a partnership was announced with Zipline for deliveries dropped from their robotic aircraft.[52] In addition, a partnership with Coca Cola was announced to provide online shopping to consumers in Africa. [53]

In 2023, Jumia announced a partnership to sell French retailer Leroy Merlin’s products in West Africa, part of a plan to expand its reach.[54][55]

In October 2023, Jumia signed a major partnership with Starlink to retail the Starlink Residential Kit in Africa, starting with Nigeria before the end of 2023 and then Kenya and later to others countries where Jumia is operating.[56][57]

Logistics

Jumia has a logistics network, which includes among its physical locations over 20 warehouses and more than 1,300 drop-off stations and pick-up stations, located across Jumia’s 11-country market, including remote areas.[58] In 2020, Jumia announced that its logistics service is now available for use by third parties for last-mile deliveries across 11 countries in Africa.[59]

In November 2022, Jumia announced that it will be scaling back its logistics-as-a-service offering and will only be available in 3 countries (Nigeria, Ivory Coast and Morocco).[60] Jumia Prime will also be suspended. [61]

Payment

In December 2021, Jumia launched a payment service provider (PSP), JumiaPay in Egypt upon regulatory approval.[62] The PSP came as part of Jumia’s strategic partnership with the National Bank of Egypt, with an objective of facilitating online payments as well as the distribution of various digital and financial services.[63]

Advertising

In 2019, Jumia opened up its e-commerce platform to brands and corporate organisations to advertise owing to the fact that its platform is one of the most visited in Nigeria and Africa.[64][65]

Jumia Advertising ranked third (and first in Africa) in Digital Ad Revenue Growth in 2022 in the world's top 10 fast-growing digital advertising players, by e-marketer - Inside Intelligence.[66]

In 2023, Jumia Advertising launched programmatic Ads, offering opportunities for brands and businesses to grow in Africa.[67]

Websites

Jumia Nigeria's ecommerce website, Jumia.com.ng, is ranked number 1,503 in global internet engagement and the thirteenth most visited website in Nigeria in late April 2020, according to Alexa.com - a global internet traffic ranking firm. It is the sixth most-visited local website in Nigeria, as of April 2020, following a recent listing by IABC Africa Media.[68][69]

CountryDomain nameSince
Algeriajumia.dzMay 2013
Egyptjumia.com.egJuly 2012
Ghanajumia.com.ghMay 2014
Ivory Coastjumia.ciMay 2013
Kenyajumia.co.keMay 2013
Moroccojumia.maJuly 2012
Nigeriajumia.com.ngJune 2012
Senegaljumia.snMay 2013
South Africajumia.co.zaJuly 2012
Tunisiajumia.com.tn
Ugandajumia.ugJune 2016

Short seller research

In May 2019, the short-seller Andrew Left of Citron Research referenced Jumia as a "securities fraud", citing material discrepancies regarding key financial metrics among a confidential investor presentation and Jumia’s F-1 filing to the SEC from its April 2019 IPO.[70] Andrew Left is known on Wall Street for making several claims of fraud and has faced calls to be investigated.[71] Jumia's share price sank more than 50% in one week after the report was published.[72] Citigroup, one of Jumia’s IPO underwriters, released a report debunking most of Citron’s allegations but noted that, “Jumia could do more to provide disclosure on some aspects of its operations, as a matter of transparency and best practice.”[73][74]

Investors

In 2012, Kasuwa (which means Market in Hausa Language) was launched with the support of Rocket Internet, MTN, and Millicom, and was later renamed Jumia Group. In March 2016, Jumia Group secured over €300M of funding from MTN, Rocket Internet, AXA, Goldman Sachs, Orange and CDC.[75]

As of 2019, the largest shareholder was MTN Group.[76]

In December 2018, Pernod Ricard invested in Jumia.[77]

In March 2019, Jumia received 50 million euros in investments from Mastercard.[78]

In 2020, Rocket Internet and MTN Group sold stake in Jumia.[79][80]

See also

References

  1. ↑ "Hesham Safwat, co-CEO, Jumia". 28 November 2018.
  2. ↑ "Jumia opens up logistics network to third parties". 6 November 2020.
  3. ↑ "Amazon's entry heats up local competition in Egypt - Al-Monitor: Independent, trusted coverage of the Middle East". www.al-monitor.com. Retrieved 21 November 2022.
  4. ↑ "Interview:E-commerce:Jérémy Hodara a créé la première licorne africaine Jumia". 11 November 2018.
  5. ↑ "Interview: Sacha Poignonnec Co-CEO, Jumia". 26 November 2018.
  6. ↑ Bright, Jake (30 June 2016). "An E-Commerce Challenge in Africa: Selling to People Who Aren't Online". The New Yorker. Retrieved 9 September 2020.
  7. ↑ "Africa's E-Commerce Giant Sets Sights on This Promising Market". 7 May 2018.
  8. ↑ "Rocket Internet's African e-commerce startup Jumia ready for next stage". 8 January 2018.
  9. ↑ "Business Today to honor Egypt's influential companies February". EgyptToday. 3 January 2019. Retrieved 20 January 2019.
  10. ↑ "Jumia Food launches online pre-payments in Kenya and Uganda". 28 August 2018.
  11. ↑ "Jumia launches multi-purpose e-commerce app". 26 March 2018.
  12. ↑ "E-commerce : Jumia désormais maître de ses transactions". 2 July 2018.
  13. ↑ "E-commerce specialist Jumia aims to grow lending service". 9 July 2018.
  14. ↑ "Buy Shoes, Clothing & Fashion | Online Shopping at Zando". www.zando.co.za. Retrieved 11 May 2019.
  15. ↑ text, I. love telling stories using; pictures; details, videos It’s all about the little (28 December 2015). "Jumia Nigeria Appoints Juliet Anammah as new CEO". Techpoint.Africa. Retrieved 15 December 2018.
  16. ↑ Paul, Emmanuel (22 January 2020). "Jumia Group appoints Massimiliano Spalazzi as Jumia Nigeria CEO". Techpoint.Africa. Retrieved 28 March 2020.
  17. ↑ Odunowo, Olanrewaju (18 July 2018). "The Road To Africa's Next Tech Unicorn". TechCabal. Retrieved 13 June 2023.
  18. ↑ "Meet the Startup Building a Market From Scratch to Become Africa's Alibaba". 25 May 2018.
  19. ↑ "Telcoin partners Jumia to enhance service and efficiency". 26 November 2018.
  20. ↑ "Carrefour signs deal with Jumia to offer online shopping in Kenya". 29 November 2018. Archived from the original on 6 December 2018.
  21. ↑ "Shares of African e-commerce company Jumia jump 71 percent in debut". Reuters. 12 April 2019. Retrieved 17 April 2019.
  22. ↑ Olukoya, Samed (16 April 2019). "Jumia Jumps 204% in Three Days |". Retrieved 17 April 2019.
  23. ↑ Johnson, Mo (10 May 2019). "Jumia Technologies (JMIA) Research Coverage Started at Stifel Nicolaus". Tech Know Bits. Retrieved 11 May 2019.
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  38. ↑ "Jumia Technologies names Francis Dufay as Acting CEO after Co-CEOs exit (NYSE:JMIA) | Seeking Alpha". seekingalpha.com. Retrieved 21 November 2022.
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  43. ↑ "African online retailer Jumia to cease food delivery business". Reuters. 13 December 2023.
  44. ↑ Kene-Okafor, Tage (14 December 2023). "Jumia discontinues food delivery across seven markets, shifts focus to expanding physical goods business". TechCrunch. Retrieved 18 December 2023.
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  47. ↑ "COVID-19: UNDP, JUMIA Uganda partner to link market vendors with consumers online". www.ug.undp.org. Retrieved 11 May 2020.
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  51. ↑ "Jumia Ghana inks partnership with smart locker provider Locqar". www.itnewsafrica.com. Retrieved 4 February 2022.
  52. ↑ "Zipline on LinkedIn: #instantdelivery | 18 comments". www.linkedin.com. Retrieved 13 September 2022.
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  59. ↑ "Jumia Opens Logistics Service to Third Parties". www.nasdaq.com. Retrieved 2 November 2020.
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  62. ↑ "Jumia to Offer Payment Services to Egypt Firms With New License". www.bloomberg.com. Retrieved 3 December 2021.
  63. ↑ "JumiaPay partners with the National Bank of Egypt to offer business payment services". www.techpoint.africa. Retrieved 8 October 2021.
  64. ↑ "Jumia platform now creates advertising space". Vanguard. 25 December 2019.
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  66. ↑ "Top 10 Fastest-Growing Platforms Worldwide, Ranked by Digital Ad Revenue Growth, 2022 (% change)". Insider Intelligence. Retrieved 16 November 2023.
  67. ↑ Release, Press. "Jumia Advertising launches programmatic Ads, offering opportunities for brands to grow in Africa". www.zawya.com. Retrieved 16 November 2023.
  68. ↑ Obi, Gospel O. (2 May 2020). "Top 20 Local Websites in Nigeria in 2020". www.iabcafrica.com. IABC Africa. Retrieved 19 July 2020.
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  70. ↑ Bright, Jake. "Africa e-tailer Jumia issues post-IPO results amid short-sell assault". TechCrunch. Retrieved 31 August 2020.
  71. ↑ "Jumia responds to citron fraud claims". Quartz Africa. Retrieved 13 May 2019.
  72. ↑ Garcia, Tonya. "Citron Research's Andrew Left slams Jumia as a 'fraud' and 'worthless'". Market Watch. Retrieved 10 May 2019.
  73. ↑ "How Jumia claimed Africa". 25 June 2019.
  74. ↑ "Jumia Is Learning Its Lessons One Market at a Time". www.nasdaq.com. Nasdaq. 21 October 2021. Retrieved 21 October 2021.
  75. ↑ "Tech conglomerate raises €50 million funding round from CDC". Pulse.ng. 13 March 2019.
  76. ↑ "Jumia to be first African start-up on NYSE". BBC News. 7 August 2016. Retrieved 13 March 2019.
  77. ↑ "Pernod Ricard invests in Africa's online retailer Jumia". Reuters. 18 December 2018. Retrieved 18 December 2018.
  78. ↑ "Mastercard to Join Investors in Africa Online Retailer Jumia". Bloomberg. 1 April 2019.
  79. ↑ "Rocket Internet sells stake in Africa ecommerce firm Jumia". Reuters. 2 April 2020.
  80. ↑ "S.Africa's MTN raises $142 million from sale of Jumia stake". Reuters. 30 October 2020.
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