Jumia has exited two African countries – Tanzania and Cameroun markets – as the e-commerce platform continues in its loss-making venture.
Per Tanzania's exit, the company said the latest move was to focus resources 'where they can bring the best value and help the company to thrive'.
“As part of our ongoing portfolio optimisation effort, Jumia has come to the difficult decision to cease our operations in Tanzania effective on November 27,” the company said in a statement.
Weeks ago, Sacha Poignonnec, CEO at Jumia, had explained that the company's current portal was not suitable for the Camerounian market.
“We came to the conclusion that our transactional portal as it is run today is not suitable to the current context in Cameroon,” Poignonnec said.
With the latest development, Jumia's markets in Africa has dropped from 14 to 12 countries.
More than years after establishment, Jumia continues to experience persistent financial losses in its core markets.
In its 3-year operating periods, the company incurred a loss of $456.3 million in 2017 and $187.8 million in 2018.
In its corporate filing to list on the New York Stock Exchange (NYSE), Africa’s largest e-commerce platform said it had accumulated losses of $949.8 million as of December 2018.
Last week, it posted $55 million lost in its Q3 financial earnings.
Jumia CEOs see hope in payment and fintech business with JumiaPay.
Sacha Poignonnec and Jeremy Hodara, CEOs of Jumia, have expressed hope in the company's payment and fintech business with JumiaPay showing very strong growth momentum on both volume and transaction metrics.
“We are making significant progress in the usage and relevance of our platform for consumers and sellers and are firmly positioning Jumia as the digital destination of choice for everyday needs in Africa,” the execs said.
Business Insider SSA has reached out to Jumia for comment and awaiting response as at the time of filing this report.
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