Nov 17, 2021
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African e-commerce company Jumia's customers jump 8% as losses deepen

Nov 17, 2021

Africa’s Jumia Technologies on Tuesday reported an 8% increase in active customers in its third quarter to the end of September from a year earlier, following a ramp-up in marketing efforts, but said its adjusted loss had nearly doubled.

Image - - Jumia

Jumia’s shares slid by 7% after the results to trade at $17.15 each, well below their February peak of $69.89.

Jumia, which became the first Africa-focused tech startup on the New York Stock Exchange when it listed there in 2019, offers an online market place for vendors and food sellers, as well as associated services.

Active customers reached 7.3 million during the quarter, the company said, a 4% increase from the previous quarter. It has increased investment in marketing campaigns to recruit new users and to retain existing ones.

Jumia’s adjusted loss before interest, tax, depreciation and amortisation accelerated by 93%, the company said.

The gross value of orders on the platform grew 8% to $238 million, driven by everyday consumer items, such as beauty and cleaning products, while total orders for the phones and electronic category fell steadily, it said.

“We see consumer investments as very strategic,” Jeremy Hodara, one of Jumia’s co-founders, told an investor briefing.

Usage of the JumiaPay financial technology platform increased during the period, it said, to account for just over a third of the total, an increase of 1.5 percentage points.

The company’s shares have gyrated since listing at $14.50. They rose to as high as $49.77, but later plunged close to $2 a share after a negative short-seller report.

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