Jumia, Africa’s largest e-commerce platform, confronted one other difficult yr in 2024 as forex devaluations in Nigeria and Egypt—its two largest markets—eroded income, whereas shifting client tendencies and rising fulfilment prices compressed margins. Regardless of aggressive cost-cutting, the corporate remained unprofitable, reporting a $64.7 million loss for the yr.
Jumia’s gross merchandise worth (GMV)—the entire worth of products ordered on its platform—fell 4% year-over-year to $720 million in reported forex however rose 28% in fixed forex, a metric that strips out the influence of devaluations. Income dropped 10% to $167.5 million, although it grew 17% in fixed forex.
The corporate’s market income (from third-party sellers) declined 31%, whereas first-party gross sales fell 14%. Gross margins additionally contracted by 12%, reflecting weaker unit economics.
Jumia’s promoting and gross sales bills declined 24%, aligning with its cost-efficiency drive, however fulfilment prices rose 11% attributable to a surge in orders, growing strain on margins.
Jumia expanded into smaller city centres throughout its core markets, the place it now generates 56% of whole orders. Nonetheless, this shift introduced a better quantity of low-value transactions, contributing to the decline in GMV. Moreover, a drop in high-margin company gross sales in Egypt additional impacted reported figures.
The corporate exited South Africa and Tunisia, decreasing its operational footprint however incurring $10 million in one-time bills. Whereas this prices, it additionally contributed to a decline in whole buyer numbers.
Jumia’s energetic buyer base fell to eight.3 million from 10 million in 2023, reflecting market exits and financial headwinds. Nonetheless, quarterly energetic customers rose barely to 2.4 million from 2.3 million in December 2024, and its buyer repurchase fee improved to 40%, signalling stronger retention amongst its remaining customers.
Jumia closed the yr with $133.9 million in money, offering a liquidity buffer however underscoring the necessity for cautious money administration given sustained losses and FX volatility.
A key money drain was $13.5 million in provider prepayments, which contributed to the corporate’s working money burn. If losses persist, Jumia might have to lift further capital or speed up effectivity measures to increase its money runway.
JumiaPay transactions grew 11% year-over-year, reaching $3.3 million by December 2024. Adoption elevated for meals and product deliveries, reinforcing Jumia’s long-term guess on embedded monetary providers.
CEO Francis Dufay continues to push for cashless transactions, with JumiaPay positioned as a key pillar of future development. Nonetheless, it faces competitors from fintech gamers like Flutterwave, Opay, and MTN’s MoMo, which dominate digital funds in Jumia’s key markets.
As Jumia enters 2025, the corporate is anticipated to proceed cost-cutting whereas fine-tuning its unit economics in key markets. Analysts consider profitability stays distant except Jumia considerably will increase buyer spending or reduces fulfilment prices.
“As we sit up for 2025, I’m optimistic about Jumia’s future,” mentioned CEO Francis Dufay. “The enterprise is stronger and extra environment friendly than it was simply two years in the past, and I consider we’ve a superb alternative forward by driving top-line development and enhancing operational efficiencies.”
With its market exits, shifting buyer combine, and chronic losses, Jumia faces a troublesome street forward. The corporate’s capability to protect money, refine its market mannequin, and develop high-margin segments will decide if it might lastly obtain sustainable profitability.
