Jumia Technologies AG (NYSE: JMIA), Africa’s leading e-commerce platform, has reported its financial results for the second quarter of 2024, showing continued resilience and strategic progress amidst a volatile economic landscape. Under the leadership of CEO Francis Dufay, the company has focused on enhancing cash efficiency, refining its customer value proposition, and leveraging strategic partnerships, resulting in notable operational and financial metrics improvements.
Revenue and GMV Performance
Despite a 17% decline in reported revenue to $36.5 million, Jumia saw a 15% increase on a constant currency basis, indicating strong underlying performance masked by currency devaluations in key markets. Gross Merchandise Value (GMV) experienced a similar pattern, with a 5% decrease in reported terms but a robust 35% growth in constant currency, reaching $170.1 million in reported currency. These metrics reflect Jumia's adaptive strategies and its emphasis on core business strengths, such as optimizing its product assortment and improving customer engagement.
Improved Cash Efficiency and Cost Management
Jumia's concerted efforts in cost management yielded significant results. The company reduced its operating loss by 8% year-over-year to $20.2 million and its Adjusted EBITDA loss by 10% to $16.3 million. Notably, the company’s cash burn was cut by more than half, declining to $8.7 million, demonstrating a disciplined approach to expenditure and efficient use of resources. This was partly achieved through a 19% reduction in marketing expenses, focusing on high-return channels like CRM, SEO, and targeted offline initiatives.
Strategic Operational Insights
Jumia’s focus on enhancing customer value and experience continued to show dividends. Orders increased by 7% year-over-year, highlighting Jumia’s success in attracting and retaining high-quality customers. Furthermore, the company achieved a 31% increase in JumiaPay transactions, supported by the growing penetration of JumiaPay on delivery and strategic cashback campaigns.
The company's logistics network, a critical component of its asset-light business model, expanded with new warehouses in Nigeria and Morocco. These expansions are strategically important for increasing storage capacity and improving supply chain management, without significantly impacting the balance sheet due to a focus on leasing rather than owning facilities.
Navigating Economic and Operational Challenges
The company’s financial performance did not escape the impact of regional currency devaluations, which affected both GMV and Total Payment Volume (TPV). TPV saw a 7% decline, largely mirroring the decrease in GMV. However, Jumia’s decision to hold 67% of its liquidity in USD mitigated some currency risks, illustrating a prudent approach to financial management.
Jumia's recent decision to end its commercial agreement with Mastercard Asia/Pacific marks a strategic shift, allowing the company to explore broader partnerships with other payment service providers. This move aims to strengthen JumiaPay’s position as a key pillar of the company’s e-commerce ecosystem, ensuring a seamless and secure payment experience for customers.
Customer Metrics and Market Expansion
Jumia's strategic focus on enhancing the customer value proposition and efficient marketing spend led to a 6% quarter-over-quarter increase in quarterly active customers, while the 90-day repurchase rate for new customers improved by 262 basis points to 36%. The shift in product mix towards categories like fashion, which have a lower AOV, was reflected in an 7% decline in AOV for physical goods to $39.2, yet contributed to a broader customer base.
The company's efforts to penetrate secondary cities yielded positive results, with a notable shift in the order mix from capital cities to secondary regions, now comprising 53% of total orders. This geographic diversification is critical for future growth, particularly as Jumia aims to serve underrepresented markets with its expansive logistics network.

Looking Ahead
Jumia remains committed to its long-term strategy of reducing losses and driving towards profitability. The company plans to continue its focus on cash efficiency, targeting further reductions in cash utilization as compared to FY 2023. With a renewed emphasis on expanding its supplier base, enhancing its logistics network, and leveraging innovative marketing and vendor technologies, Jumia is poised for continued growth.
The launch of additional BNPL partnerships in Nigeria reflects Jumia's intent to strengthen its financial services offerings, aiming to facilitate greater consumer access to e-commerce. These initiatives, combined with the company's disciplined financial management, position Jumia to capitalize on the growing demand across African markets.
In conclusion, Jumia’s Q2 2024 results underscore a period of careful yet determined execution against its strategic priorities. As the company continues to successfully navigate market challenges and drive sustainable growth, it remains a pivotal player in connecting millions of African consumers with a diverse range of products and services.

You know that feeling when you visit a website, and it already knows exactly what products you are interested in? Or when the prices displayed always seem to match your budget perfectly? How about those live chats that respond instantly and accurately? You might think, “Wow, how does this platform understand me so well?” Well, say hello to Artificial Intelligence!!

Converging with User experience (UX), AI is rapidly transforming the way people interact with digital products. Hence, delivering more human-like experiences to customers has become an integral investment for leading modern companies in the fast-advancing digital era. This trend shows the significant adoption of AI among companies committed to enhancing their operational standards and customer service, which has led to an increase in businesses in the last couple of years. It comes as no surprise that a report by IBM in 2022, indicates a 270% increase in businesses adopting AI in the last four years.

Another report titled ‘The Equinix 2023 Global Tech Trends Survey’, revealed that AI adoption is on the rise across all industries, with 94% of businesses in Nigeria likely to be using AI or planning to do so in cybersecurity, IT operations, (with 93%) and customer experience (with 92%),

However, achieving this requires advanced omnichannel conversational AI capabilities to provide seamless, personalised, and reliable customer self-service. Fortunately, AI encompasses a range of intelligent technologies that can learn, analyse data, and make decisions. In fact, machine learning, a critical subset of AI, allows algorithms to improve their performance over time by learning from data.

Embracing this trend across African countries, businesses like Jumia are transforming online shopping and user engagement through partnership with companies like Sprinklr. By harnessing AI, Jumia is making efforts geared towards enhancing operational efficiency, and creating deeply personalised experiences for its diverse user base.

Imagine shopping on e-commerce platforms and seamlessly transitioning from browsing products to seeking assistance via live chat – where AI-driven bots equipped with natural language processing help decode your queries and provide you with instant solutions. This incorporation of human touch and technological competence ensures that every interaction, whether addressing payment queries or navigating product specifications, is frictionless and efficient.

The incorporation of AI in interactions with consumers is poised for further advancement with conversational AI bots self-service enhancing capabilities. Therefore, as AI continues to advance, companies like Jumia are set to unlock new dimensions of customer satisfaction and operational excellence across its host countries.

In essence, integration of AI goes beyond mere technological enhancement, it represents a transformative stride towards a future where user-centricity and innovation converge seamlessly. By integrating AI into operations, e-commerce companies like Jumia have redefined online shopping and set a benchmark for businesses seeking to forge deeper, more meaningful connections with customers – one where interactions are smarter, experiences are more personalised, and customers are truly at the heart of the journey.

The Rise of African Entrepreneurs: Jumia's Impact on Local Businesses

Africa, home to some of the youngest and fastest-growing populations globally, is poised for significant demographic and economic change. By 2050, the continent is expected to double its population, with a substantial portion of the global population being African. DWTC. This demographic dividend, coupled with increasing internet penetration and smartphone adoption rates, forms the backdrop against a new wave of emerging entrepreneurs. Central to this wave is Jumia, an e-commerce platform that has not only revolutionised how business is conducted but has emerged as a pivotal force in empowering local entrepreneurs across the continent.

Despite facing formidable challenges such as limited access to funding, inadequate infrastructure, and administrative barriers, African entrepreneurs are leveraging digital platforms like Jumia to overcome entrepreneurial obstacles and establish a presence for themselves on the global scene. These platforms provide a vital gateway for businesses to reach wider markets, connecting local products and services with consumers both domestically and internationally.

Founded in Nigeria with operations in multiple African countries, Jumia has played a pivotal role in transforming entrepreneurship. For instance, Jumia's digital inclusion initiative in Africa boosts economic growth by enabling SMEs and local entrepreneurs to reach a wider customer base, bypassing traditional location and infrastructure barriers. Through its e-commerce marketplace, Jumia has enabled over 11,000 SMEs to connect with millions of consumers, providing them with unprecedented visibility and access to markets. Annual events like black Friday, brand festivals and tech week have become landmarks, not just for sales records but as opportunities for small businesses to thrive and expand their customer base.

Jumia’s impact extends beyond commerce. This is a testament to the brand’s laser-focused approach to leveraging digital technology to drive inclusive economic growth. Buttressing this, numerous reports indicate that online marketplaces like Jumia could potentially create millions of new jobs in Africa by 2025, offering employment opportunities and contributing to overall economic stability. This growth is not limited to major urban centres. Still, it expands to remote areas as Jumia continues its crusade for rural expansion, enhancing accessibility and choice for consumers while empowering local logistics providers and merchants.

At the heart of this accessibility is collaboration and innovation. With Jumia, entrepreneurs access a supportive ecosystem where knowledge sharing and mutual support lead to sustainable business practices and shared prosperity. Partnerships facilitated by platforms like Jumia afford African entrepreneurs, often starting with limited resources and facing daunting odds, a chance to amplify their talents and resources.

With these and many more initiatives, the trajectory of African entrepreneurship, fuelled by platforms such as Jumia, points towards a future where the continent's vast potential is fully realised. As internet access continues to expand and digital literacy grows, the opportunities for economic empowerment will only multiply. Jumia’s commitment to empowering local businesses ensures that Africa is not just catching up with global trends but setting new benchmarks for inclusive growth and innovation.

In conclusion, the rise of African entrepreneurs, sustained by digital platforms such as Jumia, marks a transformative moment in the continent’s economic narrative. It's a story of resilience, creativity, and determination, where young minds are not just adapting to change but driving it. As Africa continues its journey towards prosperity, the role of platforms like Jumia remains pivotal, empowering local businesses and shaping a brighter future for generations to come.

Jumia, the leading pan-African e-commerce platform, marks a significant milestone today: its 12th anniversary. Since 2012, Jumia has been at the forefront of transforming the e-commerce landscape across Africa, relentlessly focused on providing a convenient online shopping experience for millions of consumers.

In celebration of this milestone, Jumia will be launching its 12th-anniversary campaign, tagged "Deals in a Party Pack," offering consumers in Nigeria exciting offers on a wide selection of products.

The campaign which runs from June 24 to July 14, 2024, aims to express gratitude to Jumia's loyal consumers for their unwavering support over the past twelve years. Jumia has partnered with top brands, such as Xiaomi, Adidas, Nivea, Infinix, Defacto, Tecno, Oraimo, itel, Unilever, Diageo, Reckitt Benckiser, and Haier Thermocool, to bring consumers exclusive deals and amazing offers across various categories, including electronics, home appliances, mobile phones and accessories, fashion, beauty, and more.

"At Jumia, we're incredibly humbled by the trust and loyalty our consumers and partners have placed in us. For twelve years, Jumia has been at the forefront of e-commerce in Nigeria and Africa, empowering businesses and bringing convenience and affordability to millions of Nigerians. We're excited to celebrate this milestone with you, offering the best possible shopping experience no matter where you are in the country," said Sunil Natraj, CEO of Jumia Nigeria.

The Anniversary sale represents a great opportunity for consumers to explore a diverse range of top-quality products from renowned brands while enjoying exciting activities like Treasure Hunt, Brand Days, Games, and Flash Sales throughout the celebration.

“At itel, we share Jumia's commitment to empowering consumers through technology. Our "Enjoy better life" brand philosophy perfectly complements Jumia's mission of providing convenience and affordability. Through our collaboration during Jumia's 12th-anniversary celebration, we will be able to launch a series of online exclusive products, offering unique value to consumers and catering to the ever-evolving needs of online shoppers in Nigeria,” said Irina Liu, E-commerce Manager Africa, itel Mobile Limited.

With the recent launch of Jumia’s new integrated warehouse in Lagos, the company is well positioned to offer an even wider variety of products online and meet the growing demands of consumers, reaching beyond major cities and into underserved areas where traditional retail options are limited.


About Jumia
Jumia believes that technology has the potential to transform everyday life in Africa for the better. Jumia was built to help consumers access millions of goods and services conveniently and at the best prices while opening up a new way for sellers to reach consumers and grow their businesses.

Listed on the New York Stock Exchange (NYSE) in 2019, Jumia is the leading e-commerce company in Africa, operating in 11 countries. The Jumia platform consists of a marketplace, which connects sellers with consumers, a logistics service, which enables the shipment and delivery of packages from sellers to consumers, and a payment service, JumiaPay, which offers a safe and easy solution to facilitate online payment transactions. The company offers goods across a broad range of categories, such as phones and electronics, home appliances, fast-moving consumer goods, fashion and beauty.

Robert Awodu - Regional Head of Communications and Public Relations, Sub-Saharan Africa - robert.awodu@jumia.com

For more information about Jumia, follow us on LinkedIn: Jumia Nigeria and Twitter: JumiaNigeria.

Innovation in Customer Experience: Jumia’s Approach to Consumer Satisfaction

Online shopping should be a convenient solution for busy lives, but the reality often falls short. Consider Amina, a young professional in Lagos, who decided to treat herself to a new smartphone and outfit through an e-commerce platform. Excited by the ease of browsing and purchasing, she quickly realised her mistake when the products arrived—subpar quality and misleading reviews led to a disappointing and costly experience. This incident is all too common, reflecting the significant challenges that many consumers face with shopping online.

From misleading product descriptions to inadequate customer service, these obstacles create frustrating bottlenecks in the online shopping journey. Amina’s experience highlights the critical need for better customer experiences in e-commerce.

Data shows that consumers place a premium on the quality of experience they receive from companies. A study conducted by PWC shows that consumers will pay a 16% price premium for a great customer experience (CX). Similarly, a report by Emplifi, a leading software solutions company, reveals that 43% of consumers place high importance on previous positive customer experiences with a company when considering another purchase. Hence, in today’s competitive market, businesses that have e-commerce functions need to invest heavily in customer experience innovation to ensure that customers get all the support they need easier and faster when shopping.

Unfortunately, oftentimes most businesses do not prioritise this. In a 2024 CX Trends report by Zendesk, 68% of customers affirmed that businesses need to improve customer services. 54% reported that customer service feels like an afterthought for most of the businesses they shop with. As a result of customer experience being relegated to an “afterthought”, customers encounter avoidable hurdles in their online shopping experience. One of such hurdles is the budget constraints that hinder customers’ shopping decisions. To solve this problem, Jumia Nigeria, a leading e-commerce company in Africa introduced the ‘Buy Now, Pay Later’ (BNPL) feature into its operations to alleviate the burden of budget constraints. With this feature, consumers can acquire products and pay in instalments over time with flexible payment options.

Further elevating customer experiences, Jumia has developed a robust logistics network to solve the challenges associated with deliveries, especially to off-grid locations. With over 200 pickup stations and over 30,000 independent sales consultants known as JForce agents, Jumia ensures a seamless post-purchase experience. This extensive network delivers products to even the most remote areas, such as Modakeke, Ilaro, Offa, Uromi, Nkpor, Keffi, and Owo, ensuring that all customers can benefit from e-commerce.

Adopting a 360 approach to customer experience, Jumia offers a recommendation system called "Jumia Choice" to help shoppers discover high-quality products. This badge identifies products from official brand stores that have consistently received positive customer ratings and reviews. By highlighting these products with a badge, Jumia simplifies the shopping experience for consumers. Shoppers can easily spot these trusted products while browsing the platform and feel confident about the quality they're receiving.

Ultimately, Jumia Nigeria has set new benchmarks in its customer-centric approach to business. The company’s commitment to putting customers first ensures that it remains at the forefront of the industry, setting new standards for excellence in customer service. Through these initiatives, Jumia meets and exceeds the expectations of its diverse customer base to solidify its position as a trusted and beloved e-commerce platform.

Jumia Nigeria launches Buy Now Pay Later option to its Consumers by Partnering with Easybuy

Lagos (Nigeria), 14th May, 2024: Jumia, the leading e-commerce platform in Africa, today announced a strategic partnership with Newedge (Easybuy), an innovative finance company in Nigeria, to offer consumers a convenient way to shop online. This partnership allows consumers across Nigeria to buy their desired products and make flexible payments over a set period of time.

With this collaboration, consumers will experience a new level of convenience when shopping on the Jumia platform. By integrating Easybuy's BNPL solution, Jumia removes the barrier of immediate payment, empowering consumers to confidently purchase the items they want. This financial freedom, coupled with a streamlined checkout process that incorporates BNPL options, creates a smoother and more accessible shopping experience for everyone.

"Partnering with Easybuy to provide our consumers with a much-needed Buy Now, Pay Later solution is a win-win for everyone. We understand the importance of offering flexible payment options especially in this challenging economic environment. This partnership is a testament of our commitment to empowering our consumers and providing them with the tools they need to shop conveniently. We are confident that EasyBuy's BNPL solution will be a valuable addition to our platform and contribute significantly to the growth of e-commerce in Nigeria, ” said Sunil Natraj, CEO, Jumia Nigeria.

"As a leading "buy now, pay later" solution provider, we are thrilled to announce a strategic partnership with Jumia, one of the largest e-commerce platforms in Africa. This partnership aims to transform the online shopping experience, making it more flexible and accessible for millions of consumers. Under this partnership, customers shopping on Jumia can now benefit from Easybuy's seamless buy-now, pay-later service, allowing them to purchase a wide array of products, from electronics to home essentials with flexible payment options. This initiative represents a significant milestone in our commitment to financial inclusion and digital innovation," said Jessica Ugwuoke, CEO, Newedge Finance Limited.

As the Nigerian e-commerce landscape continues to experience growth, innovative solutions like Buy Now, Pay Later hold immense potential to further drive financial inclusion and unlock new opportunities for consumers and businesses nationwide.