Jump to content

Jumia

From Wikipedia, the free encyclopedia
(Redirected from Jumia Group)

Jumia Technologies AG
Company typePublic
NYSE: JMIA
IndustryE-commerce, Internet, Retail, Marketplace, Payment, Logistics
Founded2012; 12 years ago (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
3,000
Websitegroup.jumia.com

Jumia is a marketplace, logistics service and payment service, operating throughout Africa. The logistics service enables the delivery of packages through local partners while the payment services facilitate the payments of online transactions.[1] It has partnered with more than 100,000 sellers and individuals.[2]

History

[edit]

In 2012, Jeremy Hodara[3] and Sacha Poignonnec,[4] ex-McKinsey consultants, founded Jumia along with Tunde Kehinde and Raphael Kofi Afaedor.[5]

Jumia was launched in Nigeria in 2012 and expanded to five other countries: Egypt,[6] 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.[7] In Egypt, Jumia has been trying to categorize itself as one of the leading e-commerce websites.[8]

In June 2013, Jumia launched Jumia Travel, a hotel booking platform, and Jumia Food, a food delivery platform.[9] Jumia Deals was launched in April 2015.[citation needed] In 2017, Jumia launched Jumia One,[10] an app that enables customers to pay bills. The same year, Jumia launched JumiaPay,[11] a secure payment system. This was followed by the Jumia lending program.[12]

In South Africa, Jumia operates under the brand name Zando,[13] 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.[14] Massimiliano Spalazzi took over from Anammah as CEO in Nigeria in January 2020 and Anammah was appointed chairwoman of Jumia Nigeria and the Head of Institutional Affairs, Africa.[15]

In 2015, Jumia generated $234 million in revenue, a 265% growth from 2014.[16] In 2016, Jumia became the continent’s first unicorn being valued at over 1 billion USD.[17]

In late November 2018, Jumia partnered with cryptocurrency company Telcoin to enhance payment service capabilities throughout their areas of operation.[18] The same month, Jumia and Carrefour signed a partnership to sell online products in Africa.[19]

In April 2019, Jumia went public on the New York Stock Exchange (NYSE) and raised $196 million in net proceeds.[20] The share price, initially offered at $14.50, rose more than 200% in the first three trading sessions.[21] However, after reaching a peak of nearly $50 on 1 May 2019, the share value declined to under $5/share by year's end.[22]

In November 2019, Jumia announced the suspension of its e-commerce operations in Cameroon.[23] Jumia later ceased operations in Tanzania effective 27 November 2019.[24] The company said it needed to focus its resources on other markets and the decision would help it achieve greater success in the future.[25] On 9 December 2019, Jumia suspended Jumia Food in Rwanda.[26] Jumia, however, vowed to continue doing business online in those countries on the classifieds portals, previously called Jumia Deals.[27]

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.[28] 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.[29]

In 2020, Jumia’s total sales value of Fast-Moving Consumer Goods grow by 13 percentage points, from 44% in 2019, according to the Jumia Africa E-commerce Index 2021. [30] In 2020, Jumia ranked 7th among the top 10 influential brands in Egypt.[31] In 2021, Jumia launched its technology centre in Egypt to provide its services to the Egyptian market as well as Africa at large.[32]

COVID-19 accelerated the growth of e-commerce and digital entrepreneurship in Africa and more women embraced digital business.[33] 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.[34]

In November 2022, Jumia announced leadership changes after positing significant financial losses, with the appointment of a new Management Board and Acting CEO, while Jeremy Hodara and Sacha Poignonnec, Co-CEOs, resigned from their roles.[35] The Supervisory Board appointed Francis Dufay as Acting CEO and elevated Antoine Maillet-Mezeray to Executive Vice President Finance & Operations.[36] In February 2023, the Supervisory Board appointed Dufay as CEO after spending three months as acting CEO.[37] The said it was focused on making “radical changes” around better cost management.[38]

In December 2023, Jumia announced plans to discontinue food delivery across seven markets, shifts focus to expanding physical goods business.[39] In October 2024, Jumia made the strategic decision to exit South Africa and Tunisia, choosing to focus on Nigeria and other key markets. This move was likely driven by the company's desire to consolidate its resources and strengthen its position in its home market, Nigeria.[40]

Partnerships

[edit]

On 16 March 2020, Jumia announced a major partnership with Reckitt Benckiser, a health products manufacturer, to provide hygiene products during the pandemic.[41][42] 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.[43] 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 pandemic.[44]

In December 2020, Jumia announced a partnership with Egypt Post to boost and develop e-commerce trade flows and industry in Egypt.[45] In December 2021, UNICEF and Jumia partnered to help Giga connect schools in Africa to the Internet.[46] In February 2022, Jumia announced a partnership with LocQar, a smart locker company, to bring online deliveries closer to its consumers in Ghana.[47]

In September 2022, a partnership was announced with Zipline for deliveries dropped from their robotic aircraft.[48] In addition, a partnership with Coca Cola was announced to provide online shopping to consumers in Africa.[49] 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.[50][51]

In October 2023, Jumia signed a 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.[52][53]

Logistics

[edit]

Jumia has a logistics network, which includes among its physical locations warehouses, drop-off stations and pick-up stations.[54] In 2020, Jumia announced that its logistics service was available for use by third parties for last-mile deliveries across 11 countries in Africa.[55]

In November 2022, Jumia announced that it would be scaling back its logistics and would only be available in three countries (Nigeria, Ivory Coast and Morocco).[56] Jumia Prime was also suspended.[57]

In May 2024, Jumia launched an integrated warehouse in Nigeria, consolidating its operations and expanding storage capacity.[58][59] In June 2024, Jumia opened a warehouse in Morocco.[60][61]

Payment

[edit]

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]

In May 2024, Jumia Nigeria launched two new Buy Now, Pay Later partnerships with Easybuy and CredPal, aimed at expanding Nigerian consumers' access to Jumia's marketplace, conveniently allowing them to make purchases and spread their payments over a set period.[64] In the same month, JumiaPay Egypt and Contact expanded their partnership to provide various payment methods, facilitating the online purchasing process for customers.[65]

Advertising

[edit]

In 2019, Jumia opened up its e-commerce platform to brands and corporate organisations to advertise because its platform is one of the most visited in Nigeria and Africa.[66][67]

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.[68]

In 2023, Jumia Advertising launched programmatic Ads, offering opportunities for brands and businesses to grow in Africa.[69]

Websites

[edit]

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.[70][71]

Country Domain name Since
Algeria jumia.dz May 2013
Egypt jumia.com.eg July 2012
Ghana jumia.com.gh May 2014
Ivory Coast jumia.ci May 2013
Kenya jumia.co.ke May 2013
Morocco jumia.ma July 2012
Nigeria jumia.com.ng June 2012
Senegal jumia.sn May 2013
South Africa jumia.co.za July 2012
Tunisia jumia.com.tn
Uganda jumia.ug June 2016

Short seller research

[edit]

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.[72] Andrew Left is known on Wall Street for making several claims of fraud and has faced calls to be investigated.[73] Jumia's share price sank more than 50% in one week after the report was published.[74] 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.”[75][76]

Investors

[edit]

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.[77]

As of 2019, the largest shareholder was MTN Group.[78]

In December 2018, Pernod Ricard invested in Jumia.[79]

In March 2019, Jumia received 50 million euros in investments from Mastercard.[80]

In 2020, Rocket Internet and MTN Group sold stake in Jumia.[81][82]

See also

[edit]

References

[edit]
  1. ^ "Hesham Safwat, co-CEO, Jumia". 28 November 2018.
  2. ^ "Jumia opens up logistics network to third parties". 6 November 2020.
  3. ^ "Interview:E-commerce:Jérémy Hodara a créé la première licorne africaine Jumia". 11 November 2018.
  4. ^ "Interview: Sacha Poignonnec Co-CEO, Jumia". 26 November 2018.
  5. ^ 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.
  6. ^ "Africa's E-Commerce Giant Sets Sights on This Promising Market". 7 May 2018.
  7. ^ "Rocket Internet's African e-commerce startup Jumia ready for next stage". 8 January 2018.
  8. ^ "Business Today to honor Egypt's influential companies February". EgyptToday. 3 January 2019. Retrieved 20 January 2019.
  9. ^ "Jumia Food launches online pre-payments in Kenya and Uganda". 28 August 2018.
  10. ^ "Jumia launches multi-purpose e-commerce app". 26 March 2018.
  11. ^ "E-commerce : Jumia désormais maître de ses transactions". 2 July 2018.
  12. ^ "E-commerce specialist Jumia aims to grow lending service". 9 July 2018.
  13. ^ "Buy Shoes, Clothing & Fashion | Online Shopping at Zando". www.zando.co.za. Retrieved 11 May 2019.
  14. ^ 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.
  15. ^ Paul, Emmanuel (22 January 2020). "Jumia Group appoints Massimiliano Spalazzi as Jumia Nigeria CEO". Techpoint.Africa. Retrieved 28 March 2020.
  16. ^ Odunowo, Olanrewaju (18 July 2018). "The Road To Africa's Next Tech Unicorn". TechCabal. Retrieved 13 June 2023.
  17. ^ "Meet the Startup Building a Market From Scratch to Become Africa's Alibaba". 25 May 2018.
  18. ^ "Telcoin partners Jumia to enhance service and efficiency". 26 November 2018.
  19. ^ "Carrefour signs deal with Jumia to offer online shopping in Kenya". 29 November 2018. Archived from the original on 6 December 2018.
  20. ^ "Shares of African e-commerce company Jumia jump 71 percent in debut". Reuters. 12 April 2019. Retrieved 17 April 2019.
  21. ^ Olukoya, Samed (16 April 2019). "Jumia Jumps 204% in Three Days |". Retrieved 17 April 2019.
  22. ^ Iwayemi, Zainab (15 February 2022). "African unicorn: The most valuable startups by Africans you should know". Nairametrics. Retrieved 13 June 2023.
  23. ^ "The 'Amazon of Africa' shutters in Cameroon — just before Black Friday". 20 November 2019.
  24. ^ "Jumia shuts Tanzania e-commerce business in portfolio review". 28 November 2019. Archived from the original on 29 November 2019.
  25. ^ "Jumia shuts Tanzania e-commerce business in portfolio review". 28 November 2019.
  26. ^ "Jumia Food to close Rwanda operations". 9 December 2019.
  27. ^ "Jumia shuts down in Cameroon". 19 November 2019.
  28. ^ "Travelstart takes over rival Jumia Travel, plans to tap new customers". 10 December 2019.
  29. ^ "Travelstart acquires Jumia Travel, Hotel services". 10 December 2019.
  30. ^ "Consumables dominate Jumia's sales as buyer habits change". www.ipsos.com. TechCrunch+. 26 October 2021. Retrieved 26 October 2021.
  31. ^ "In 2020, Jumia ranked 7th among the top 10 influential brands in Egypt". www.ipsos.com. Ipsos. 28 March 2021. Retrieved 28 March 2021.
  32. ^ Prince, Charles; admin (10 February 2021). "Jumia's New Technology Center Launches In Egypt". Arbiterz. Retrieved 23 November 2022.
  33. ^ "Women and E-commerce in Africa" (PDF). www.ifc.org. IFC. 27 May 2021. Retrieved 27 May 2021.
  34. ^ "Women Can Add $14.57 Billion to E-Commerce in Africa: IFC Research". www.ifc.org. IFC. 27 May 2021. Retrieved 27 May 2021.
  35. ^ Kene-Okafor, Tage (7 November 2022). "Jeremy Hodara and Sacha Poignonnec step down as Jumia co-CEOs". TechCrunch. Retrieved 21 November 2022.
  36. ^ "Jumia Technologies names Francis Dufay as Acting CEO after Co-CEOs exit (NYSE:JMIA) | Seeking Alpha". seekingalpha.com. Retrieved 21 November 2022.
  37. ^ Kene-Okafor, Tage (16 February 2023). "Jumia laid off 20% of staff in Q4 2022 amid work to reduce losses by half this year". TechCrunch. Retrieved 22 February 2023.
  38. ^ "Jumia's new CEO has a "radical" plan for Africa's struggling e-commerce leader". Rest of World. 28 March 2023. Retrieved 11 April 2023.
  39. ^ "African online retailer Jumia to cease food delivery business". Reuters. 13 December 2023.
  40. ^ Omenye, Alex (16 October 2024). "Jumia exits South Africa, Tunisia, faces Nigeria, others". Punch Newspapers. Retrieved 23 October 2024.
  41. ^ Okonji, Emma (19 March 2020). "Nigeria: Jumia, Reckitt Benckiser Partner Against COVID-19". allAfrica.com. Retrieved 19 March 2020.
  42. ^ "Jumia and Reckitt Benckiser Partner to Provide Consumers Access to Hygiene Products in Africa". www.bloomberg.com. Retrieved 19 March 2020.
  43. ^ "COVID-19: UNDP, JUMIA Uganda partner to link market vendors with consumers online". www.ug.undp.org. Retrieved 11 May 2020.
  44. ^ "Jumia signs pact with Moroccan govt to boost handicrafts sector". www.logupdateafrica.com. Retrieved 9 September 2020.
  45. ^ "Egypt Post, Jumia Sign Cooperation Protocol in E-commerce". www.see.news. Retrieved 8 December 2020.
  46. ^ "UNICEF and Jumia launch a partnership to help Giga connect schools in Africa to the Internet". www.unicef.org. Retrieved 11 November 2021.
  47. ^ "Jumia Ghana inks partnership with smart locker provider Locqar". www.itnewsafrica.com. Retrieved 4 February 2022.
  48. ^ "Zipline on LinkedIn: #instantdelivery | 18 comments". www.linkedin.com. Retrieved 13 September 2022.
  49. ^ "Jumia, Coca-Cola Partner To Provide Online Shopping To Consumers In Africa – THISDAYLIVE". www.thisdaylive.com. Retrieved 21 November 2022.
  50. ^ "Jumia Pushes Into Small African Cities With French Retail Giant". Bloomberg.com. 22 March 2023. Retrieved 11 April 2023.
  51. ^ "Après la Côte d'Ivoire, Leroy Merlin se lance au Sénégal grâce à Jumia – Jeune Afrique". JeuneAfrique.com (in French). Retrieved 11 April 2023.
  52. ^ "Elon Musk's Starlink Partners With Jumia to Expand Services in Africa". Bloomberg.com. 2 October 2023. Retrieved 16 November 2023.
  53. ^ Agbetiloye, Adekunle (2 October 2023). "Elon Musks' Starlink partners with Jumia to boost fast-speed internet in Africa". Business Insider Africa. Retrieved 16 November 2023.
  54. ^ "Jumia Opens Logistics Service to Third Parties". www.bloomberg.com. Retrieved 2 November 2020.
  55. ^ "Jumia Opens Logistics Service to Third Parties". www.nasdaq.com. Retrieved 2 November 2020.
  56. ^ "The 'Amazon of Africa' is reducing staff and ending its Prime service". Quartz. 18 November 2022. Retrieved 21 November 2022.
  57. ^ Kene-Okafor, Tage (18 November 2022). "Jumia to cut products and overhead as new management chases profits". TechCrunch. Retrieved 21 November 2022.
  58. ^ Correspondent, Our (3 June 2024). "Jumia Nigeria launches 30,000 sq.mt. warehouse to boost efficiency". www.logupdateafrica.com. Retrieved 3 June 2024. {{cite web}}: |last= has generic name (help)
  59. ^ "Jumia Opens New Integrated Warehouses in Lagos, Nigeria and Casablanca, Morocco". Yahoo Finance. 10 June 2024. Retrieved 18 June 2024.
  60. ^ "Jumia Maroc ouvre un nouvel entrepôt à Bouskoura, renforçant son réseau logistique". La Nouvelle Tribune (in French). 5 June 2024. Retrieved 18 June 2024.
  61. ^ Correspondent, Our (5 June 2024). "Jumia Maroc opens 5,000 sq.mt. warehouse to support growth". www.logupdateafrica.com. Retrieved 18 June 2024. {{cite web}}: |last= has generic name (help)
  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 Nigeria Launches Two New Buy Now, Pay Later Partnerships with Easybuy and CredPal". Yahoo Finance. 21 May 2024. Retrieved 3 June 2024.
  65. ^ Release, Press. "JumiaPay Egypt and Contact expand their partnership". www.zawya.com. Retrieved 3 June 2024.
  66. ^ "Jumia platform now creates advertising space". Vanguard. 25 December 2019.
  67. ^ Chudasama, Sid (3 February 2020). "Jumia allows brands to advertise on its platform for wider audiences". CIO Africa. Retrieved 16 November 2023.
  68. ^ "Top 10 Fastest-Growing Platforms Worldwide, Ranked by Digital Ad Revenue Growth, 2022 (% change)". Insider Intelligence. Retrieved 16 November 2023.
  69. ^ Release, Press. "Jumia Advertising launches programmatic Ads, offering opportunities for brands to grow in Africa". www.zawya.com. Retrieved 16 November 2023.
  70. ^ Obi, Gospel O. (2 May 2020). "Top 20 Local Websites in Nigeria in 2020". www.iabcafrica.com. IABC Africa. Retrieved 19 July 2020.
  71. ^ "Top sites in Nigeria", Alexa Page Rank, 23 April 2020, archived from the original on 25 April 2020, retrieved 26 April 2020
  72. ^ Bright, Jake. "Africa e-tailer Jumia issues post-IPO results amid short-sell assault". TechCrunch. Retrieved 31 August 2020.
  73. ^ "Jumia responds to citron fraud claims". Quartz Africa. Retrieved 13 May 2019.
  74. ^ Garcia, Tonya. "Citron Research's Andrew Left slams Jumia as a 'fraud' and 'worthless'". Market Watch. Retrieved 10 May 2019.
  75. ^ "How Jumia claimed Africa". 25 June 2019.
  76. ^ "Jumia Is Learning Its Lessons One Market at a Time". www.nasdaq.com. Nasdaq. 21 October 2021. Retrieved 21 October 2021.
  77. ^ "Tech conglomerate raises €50 million funding round from CDC". Pulse.ng. 13 March 2019.
  78. ^ "Jumia to be first African start-up on NYSE". BBC News. 7 August 2016. Retrieved 13 March 2019.
  79. ^ "Pernod Ricard invests in Africa's online retailer Jumia". Reuters. 18 December 2018. Retrieved 18 December 2018.
  80. ^ "Mastercard to Join Investors in Africa Online Retailer Jumia". Bloomberg. 1 April 2019.
  81. ^ "Rocket Internet sells stake in Africa ecommerce firm Jumia". Reuters. 2 April 2020.
  82. ^ "S.Africa's MTN raises $142 million from sale of Jumia stake". Reuters. 30 October 2020.
[edit]
  • Business data for Jumia:
Retrieved from "https://en.wikipedia.org/w/index.php?title=Jumia&oldid=1253841746"