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@Jumia_Group is a unique African e-commerce company that has the first-mover advantage in the race to become the Amazon of Africa.
Will it hold onto this lead or squander it? A thread exploring this question:
Will it hold onto this lead or squander it? A thread exploring this question:
Founded in 2012, Jumia has achieved a lot in just 8 years:
- 110,000 sellers on the platform today
- 6.7 million annual active customers
- Generating about $1.2 billion in gross merchandise value annually
- Market cap of ~$3 Billion
- 110,000 sellers on the platform today
- 6.7 million annual active customers
- Generating about $1.2 billion in gross merchandise value annually
- Market cap of ~$3 Billion
It's no secret that Africa is the next frontier for the global economy:
- Africa population will nearly double from 1.3 billion today to 2.4 billion by 2050
- The continent has over 500m internet users
- Its economy is set to grow 3-5% consistently over the next decades
- Africa population will nearly double from 1.3 billion today to 2.4 billion by 2050
- The continent has over 500m internet users
- Its economy is set to grow 3-5% consistently over the next decades
Today Jumia operates in 11 African countries who account for the bulk of the continent's GDP and population, particularly Nigeria, Egypt and South Africa.
Jumia is a highly diversified business:
- Marketplace: 40m product listings today
- Jumia Food Delivery
- Jumia Logistics: A fulfillment business for it's retailers
- Jumia Gaming: Launched in Q3 2020 with 500 different mobile games
- Marketplace: 40m product listings today
- Jumia Food Delivery
- Jumia Logistics: A fulfillment business for it's retailers
- Jumia Gaming: Launched in Q3 2020 with 500 different mobile games
The growth of e-commerce in Africa faces many challenges but payments is one of the hardest. About 2/3 of the continent's population is unbanked.
The company created JumiaPay to help ease this challenge and continues to invest heavily in it. It's adoption has been impressive.
The company created JumiaPay to help ease this challenge and continues to invest heavily in it. It's adoption has been impressive.
JumiaPay has grown rapidly in the last year with a 74% increase in year-on-year payment volume in the first 9 months of 2020.
Overall an impressive 34% of transactions in that period were paid for on JumiaPay.
Overall an impressive 34% of transactions in that period were paid for on JumiaPay.
While Jumia has established an early lead and broad presence across the continent, it's facing stiff competition from other startups.
@ShopKonga has been an war with Jumia for years in a battle to dominate the Nigerian ecommece market. The company is considering an IPO soon.
@ShopKonga has been an war with Jumia for years in a battle to dominate the Nigerian ecommece market. The company is considering an IPO soon.
@TAKEALOT is South Africa's leading ecommece site, but operates nowhere else.
@Kilimall, founded by a ex-Huawei employee, allows Chinese as well as local merchants to sell directly into Africa and currently operates in Kenya, Uganda and Nigeria.
@Kilimall, founded by a ex-Huawei employee, allows Chinese as well as local merchants to sell directly into Africa and currently operates in Kenya, Uganda and Nigeria.
Jumia's leadership are focused and have made hard choices in the pursuit of profitability including:
- Shutting down operations in 3 countries
- Shutting down it's hotel booking engine Jumia Travel
- Cuttings administrative costs
This has started to pay off.
- Shutting down operations in 3 countries
- Shutting down it's hotel booking engine Jumia Travel
- Cuttings administrative costs
This has started to pay off.
Will Jumia squander it's lead in the war to be the Amazon of Africa?
Will it continue to lose ground to well run local competitors like Takealot?
Will there be multiple regional e-commerce winners? Or one Amazon-like giant that dominates the continent?
Will it continue to lose ground to well run local competitors like Takealot?
Will there be multiple regional e-commerce winners? Or one Amazon-like giant that dominates the continent?
Absolute monster Black Friday for Jumia. All metrics moving in the right direction!
