Dipo Olowookere
By Dipo Olowookere
The continued implementation of the cost discipline strategy by the management of Jumia has further yielded good result, going by the details of the financial statements of Africa’s e-commerce market leader for the first quarter of 2021 released recently.
For the sixth consecutive quarter, the company recorded a positive gross profit after fulfilment expense, which reached €6.2 million.
Analysis of the results showed that Jumia is making significant inroads in payment and fintech, with 37 per cent of orders in the Q1 of 2021 completed using JumiaPay.
The report revealed that total payment volume on JumiaPay increased by 21 per cent from €35.5 million in Q1 2020 to €42.9 million in Q1 2021. On a constant currency basis, TPV increased by 35 per cent year-over-year.
On-platform penetration of JumiaPay as a percentage of GMV increased to 26.0 per cent in the period under review from 18.7 per cent in the same period of 2020, while JumiaPay transactions increased by 7 per cent from 2.3 million in Q1 2020 to 2.4 million in Q1 2021.
Overall, 36.7 per cent of orders placed on the Jumia platform in the first quarter of 2021 were completed using JumiaPay, compared to 35.5 per cent in the first quarter of 2020. Jumia Food and on-demand services accounted for 22 per cent of orders and 9 per cent of GMV in the first quarter of 2021.
Likewise, annual active consumers reached 6.9 million in the first quarter of 2021, up 7 per cent year-over-year, as the platform continued to acquire new consumers and engage existing ones.
Orders reached 6.6 million, up 3 per cent year-over-year, a reversal of the declining trend observed over the prior two quarters.
“Our first-quarter results reflect solid progress towards profitability. The drivers remain consistent; selective and disciplined usage growth, gradual monetization and continued cost discipline,” the co-CEOs of Jumia, Jeremy Hodara and Sacha Poignonnec, were quoted as saying in a statement.
They stated that, “Adjusted EBITDA loss contracted by 24 per cent year-over-year, reaching €27.0 million.
“Our strategy to increase our exposure to everyday product categories continues to yield positive results, enhancing the relevance of our marketplace for consumers.”
As per the steps being taken towards the $10 billion market capitalization, the CEOs said, “We have raised over $570 million over the past 6 months, strengthening our balance sheet and increasing our strategic flexibility.
“We are confident that we have all the right ingredients to continue to build a growing business across both our e-commerce and fintech activities.”
