Jumia
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Company type | Public |
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NYSE: JMIA | |
Industry | E-commerce, Internet, Retail, Marketplace, Payment, Logistics |
Founded | 2012 Lagos, Nigeria. |
Founders | Jérémy Hodara, Sacha Poignonnec, Tunde Kehinde, Raphael Kofi Afaedor |
Key people |
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Number of employees | 4000 |
Website | group |
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 is a direct competitor to Konga in Nigeria and Amazon 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.
![](http://upload.wikimedia.org/wikipedia/commons/thumb/8/8d/Juliet_Anammah_Global_Investment_Game_Changers_Summit_2018.jpg/220px-Juliet_Anammah_Global_Investment_Game_Changers_Summit_2018.jpg)
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.[citation needed] In 2016, Jumia became the continent’s first unicorn being valued 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] The first analyst papers release 21 days after the IPO rated the company at stock targets between 27 and 40 USD.[22] After reaching a peak of nearly $50 on 1 May 2019, the share value has declined to under $5/share by year's end.[citation needed]
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.[23] As part of the portfolio optimization effort, Jumia later ceased operations in Tanzania effective on 27 November 2019.[24] 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.[25] 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.[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 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. [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 have 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 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. [35] The Supervisory Board appointed Francis Dufay as Acting CEO and elevated Antoine Maillet-Mezeray to Executive Vice President Finance & Operations. [36]
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.[37][38]
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.[39]
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.[40]
In December 2020, Jumia announced a partnership with Egypt Post to boost and develop e-commerce trade flows and industry in Egypt.[41]
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.[42]
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.[43]
In September 2022, a partnership was announced with Zipline for deliveries dropped from their robotic aircraft.[44] In addition, a partnership with Coca Cola was announced to provide online shopping to consumers in Africa. [45]
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.[46] In 2020, Jumia announced that its logistics service is now available for use by third parties who wish to leverage its network, technology and expertise for last-mile deliveries across 11 countries in Africa.[47]
In August 2021, Jumia partnered with modern eco-friendly mobility company, Solar Taxi to provide affordable and eco-friendly delivery of online orders for consumers in Ghana as the company looks to achieve a fully green footprint through the use of clean and sustainable renewable energy.[48]
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).[49] Jumia Prime will also be suspended. [50]
Payment
In December 2021, Jumia launched a payment service provider (PSP), JumiaPay in Egypt upon regulatory approval.[51] 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.[52]
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.[53][54]
Country | Domain name | Since |
---|---|---|
Algeria | jumia.dz | May 2012 |
Egypt | jumia.com.eg | July 2012 |
Ghana | jumia.com.gh | May 2014 |
Ivory Coast | jumia.ci | May 2012 |
Kenya | jumia.co.ke | May 2013 |
Morocco | jumia.ma | May 2012 |
Nigeria | jumia.com.ng | July 2012 |
Senegal | jumia.sn | May 2012 |
South Africa | jumia.co.za | July 2012 |
Tunisia | jumia.com.tn | |
Uganda | jumia.ug | June 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.[55] Andrew Left is known on Wall Street for making several claims of fraud and has faced calls to be investigated.[56] Jumia's share price sank more than 50% in one week after the report was published.[57] 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.”[58][59]
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.[60]
As of 2019, the largest shareholder was MTN Group.[61]
In December 2018, Pernod Ricard invested in Jumia.[62]
In March 2019, Jumia received 50 million euros in investments from Mastercard.[63]
In 2020, Rocket Internet and MTN Group sold stake in Jumia.[64][65]
Awards and recognition
- 2013 Brand Journalists Association of Nigeria Awards (Online Retail Brand of the Year) [66]
- 2013 World Retail Awards[67]
- 2014 Best Online Retail Brand of the Year Award [68]
- 2015: E-commerce Customer Service Excellence Awards [69]
- 2016: Jumia ranked 82nd in the Top WIRED 100 list [70]
- 2017: Jumia is listed among the Massachusetts Institute of Technology’s Smartest Companies 2017. Ranking 47 on the list, Jumia is the only African company named in MIT's top 50 smartest companies.[71]
- 2019: Jumia crowned Tunisia's best e-shop [72]
- 2019: eCommerce Company of the Year Award in Nigeria [73]
- 2019: Chartered Institute of Marketing Ghana eCommerce Company of the Year[74]
- 2021: Ecommerce Website of the Year in Kenya [75]
- 2021: Best Loyalty Programme in Kenya [76]
- 2021: Best Logistics in Nigeria - Unilever [77]
- 2022: E-Commerce Website of the Year in Nigeria [78]
- 2022: HR Best Practice in E-Commerce Sector [79]
See also
References
- ^ "Hesham Safwat, co-CEO, Jumia". 28 November 2018.
- ^ "Jumia opens up logistics network to third parties". 6 November 2020.
- ^ "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.
- ^ "Interview:E-commerce:Jérémy Hodara a créé la première licorne africaine Jumia". 11 November 2018.
- ^ "Interview: Sacha Poignonnec Co-CEO, Jumia". 26 November 2018.
- ^ 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.
- ^ "Africa's E-Commerce Giant Sets Sights on This Promising Market". 7 May 2018.
- ^ "Rocket Internet's African e-commerce startup Jumia ready for next stage". 8 January 2018.
- ^ "Business Today to honor Egypt's influential companies February". EgyptToday. 3 January 2019. Retrieved 20 January 2019.
- ^ "Jumia Food launches online pre-payments in Kenya and Uganda". 28 August 2018.
- ^ "Jumia launches multi-purpose e-commerce app". 26 March 2018.
- ^ "E-commerce : Jumia désormais maître de ses transactions". 2 July 2018.
- ^ "E-commerce specialist Jumia aims to grow lending service". 9 July 2018.
- ^ "Buy Shoes, Clothing & Fashion | Online Shopping at Zando". www.zando.co.za. Retrieved 11 May 2019.
- ^ 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.
- ^ Paul, Emmanuel (22 January 2020). "Jumia Group appoints Massimiliano Spalazzi as Jumia Nigeria CEO". Techpoint.Africa. Retrieved 28 March 2020.
- ^ "Meet the Startup Building a Market From Scratch to Become Africa's Alibaba". 25 May 2018.
- ^ "Telcoin partners Jumia to enhance service and efficiency". 26 November 2018.
- ^ "Carrefour signs deal with Jumia to offer online shopping in Kenya". 29 November 2018. Archived from the original on 6 December 2018.
- ^ "Shares of African e-commerce company Jumia jump 71 percent in debut". Reuters. 12 April 2019. Retrieved 17 April 2019.
- ^ Olukoya, Samed (16 April 2019). "Jumia Jumps 204% in Three Days |". Retrieved 17 April 2019.
- ^ Johnson, Mo (10 May 2019). "Jumia Technologies (JMIA) Research Coverage Started at Stifel Nicolaus". Tech Know Bits. Retrieved 11 May 2019.
- ^ "The 'Amazon of Africa' shutters in Cameroon — just before Black Friday". 20 November 2019.
- ^ "Jumia shuts Tanzania e-commerce business in portfolio review". 28 November 2019. Archived from the original on 29 November 2019.
- ^ "Jumia shuts Tanzania e-commerce business in portfolio review". 28 November 2019.
- ^ "Jumia Food to close Rwanda operations". 9 December 2019.
- ^ "Jumia shuts down in Cameroon". 19 November 2019.
- ^ "Travelstart takes over rival Jumia Travel, plans to tap new customers". 10 December 2019.
- ^ "Travelstart acquires Jumia Travel, Hotel services". 10 December 2019.
- ^ "Consumables dominate Jumia's sales as buyer habits change". www.ipsos.com. TechCrunch+. 26 October 2021. Retrieved 26 October 2021.
- ^ "In 2020, Jumia ranked 7th among the top 10 influential brands in Egypt". www.ipsos.com. Ipsos. 28 March 2021. Retrieved 28 March 2021.
- ^ Prince, Charles; admin (10 February 2021). "Jumia's New Technology Center Launches In Egypt". Arbiterz. Retrieved 23 November 2022.
- ^ "Women and E-commerce in Africa" (PDF). www.ifc.org. IFC. 27 May 2021. Retrieved 27 May 2021.
- ^ "Women Can Add $14.57 Billion to E-Commerce in Africa: IFC Research". www.ifc.org. IFC. 27 May 2021. Retrieved 27 May 2021.
- ^ Kene-Okafor, Tage (7 November 2022). "Jeremy Hodara and Sacha Poignonnec step down as Jumia co-CEOs". TechCrunch. Retrieved 21 November 2022.
- ^ "Jumia Technologies names Francis Dufay as Acting CEO after Co-CEOs exit (NYSE:JMIA) | Seeking Alpha". seekingalpha.com. Retrieved 21 November 2022.
- ^ Okonji, Emma (19 March 2020). "Nigeria: Jumia, Reckitt Benckiser Partner Against COVID-19". allAfrica.com. Retrieved 19 March 2020.
- ^ "Jumia and Reckitt Benckiser Partner to Provide Consumers Access to Hygiene Products in Africa". www.bloomberg.com. Retrieved 19 March 2020.
- ^ "COVID-19: UNDP, JUMIA Uganda partner to link market vendors with consumers online". www.ug.undp.org. Retrieved 11 May 2020.
- ^ "Jumia signs pact with Moroccan govt to boost handicrafts sector". www.logupdateafrica.com. Retrieved 9 September 2020.
- ^ "Egypt Post, Jumia Sign Cooperation Protocol in E-commerce". www.see.news. Retrieved 8 December 2020.
- ^ "UNICEF and Jumia launch a partnership to help Giga connect schools in Africa to the Internet". www.unicef.org. Retrieved 11 November 2021.
- ^ "Jumia Ghana inks partnership with smart locker provider Locqar". www.itnewsafrica.com. Retrieved 4 February 2022.
- ^ "Zipline on LinkedIn: #instantdelivery | 18 comments". www.linkedin.com. Retrieved 13 September 2022.
- ^ "Jumia, Coca-Cola Partner To Provide Online Shopping To Consumers In Africa – THISDAYLIVE". www.thisdaylive.com. Retrieved 21 November 2022.
- ^ "Jumia Opens Logistics Service to Third Parties". www.bloomberg.com. Retrieved 2 November 2020.
- ^ "Jumia Opens Logistics Service to Third Parties". www.nasdaq.com. Retrieved 2 November 2020.
- ^ "Jumia Partners with SolarTaxi to Provide Eco-Friendly Deliveries to Ghanaians". www.itnewsafrica.com. Retrieved 20 August 2021.
- ^ "The 'Amazon of Africa' is reducing staff and ending its Prime service". Quartz. 18 November 2022. Retrieved 21 November 2022.
- ^ Kene-Okafor, Tage (18 November 2022). "Jumia to cut products and overhead as new management chases profits". TechCrunch. Retrieved 21 November 2022.
- ^ "Jumia to Offer Payment Services to Egypt Firms With New License". www.bloomberg.com. Retrieved 3 December 2021.
- ^ "JumiaPay partners with the National Bank of Egypt to offer business payment services". www.techpoint.africa. Retrieved 8 October 2021.
- ^ Obi, Gospel O. (2 May 2020). "Top 20 Local Websites in Nigeria in 2020". www.iabcafrica.com. IABC Africa. Retrieved 19 July 2020.
- ^ "Top sites in Nigeria", Alexa Page Rank, 23 April 2020, archived from the original on 25 April 2020, retrieved 26 April 2020
- ^ Bright, Jake. "Africa e-tailer Jumia issues post-IPO results amid short-sell assault". TechCrunch. Retrieved 31 August 2020.
- ^ "Jumia responds to citron fraud claims". Quartz Africa. Retrieved 13 May 2019.
- ^ Garcia, Tonya. "Citron Research's Andrew Left slams Jumia as a 'fraud' and 'worthless'". Market Watch. Retrieved 10 May 2019.
- ^ "How Jumia claimed Africa". 25 June 2019.
- ^ "Jumia Is Learning Its Lessons One Market at a Time". www.nasdaq.com. Nasdaq. 21 October 2021. Retrieved 21 October 2021.
- ^ "Tech conglomerate raises €50 million funding round from CDC". Pulse.ng. 13 March 2019.
- ^ "Jumia to be first African start-up on NYSE". BBC News. 7 August 2016. Retrieved 13 March 2019.
- ^ "Pernod Ricard invests in Africa's online retailer Jumia". Reuters. 18 December 2018. Retrieved 18 December 2018.
- ^ "Mastercard to Join Investors in Africa Online Retailer Jumia". Bloomberg. 1 April 2019.
- ^ "Rocket Internet sells stake in Africa ecommerce firm Jumia". Reuters. 2 April 2020.
- ^ "S.Africa's MTN raises $142 million from sale of Jumia stake". Reuters. 30 October 2020.
- ^ "Jumia Nigeria wins best online retail brand of the year award". 31 January 2014.
- ^ "Rocket Internet's Jumia Becomes First African Company to Win Top World Retail Award". 10 October 2013.
- ^ "Jumia Nigeria wins best online retail brand of the year award". 21 January 2014.
- ^ "Jumia bags win at Nigeria customer service awards 2015". 16 October 2015.
- ^ "The WIRED 100". 26 August 2016.
- ^ "50 Smartest Companies 2017". 1 January 2017.
- ^ "Jumia wins best online store award in Tunisia". 27 December 2019.
- ^ "Jumia Set To Receive E-Commerce Company Of The Year Award For Promoting MSMEs". 31 January 2019.
- ^ "List of winners at CIMG Awards 2019". MyJoyOnline.com. 14 November 2020. Retrieved 16 November 2020.
- ^ "Jumia Kenya scoops two awards at the Kenya e-Commerce awards". www.techtrendske.co.ke. 1 September 2021.
- ^ "Jumia bags two awards at Kenya eCommerce awards". www.biznakenya.com. 2 September 2021.
- ^ "Jumia Nigeria Awarded Best Logistics Partner by Unilever". www.bloomberg.com. 30 November 2021.
- ^ Africa, B. I. (29 July 2022). "GAGE Awards 2022: Jumia Nigeria recognized as e-commerce website of the year". Business Insider Africa. Retrieved 21 November 2022.
- ^ BusinessDay (28 October 2022). "Jumia Nigeria emerges winner of HR Best Practice in e-commerce sector". Businessday NG. Retrieved 21 November 2022.
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External links
- Business data for Jumia: