If there is anything Jumia is close to meeting, it is certainly not profit. Early this morning, Rocket Internet, the parent company of Jumia said the company suffered a net loss of USD61 million loss in six months.


To understand the extent of the number, a conversion using the real-time exchange rate to Naira (NGN) shows that Jumia made a net loss of NGN22 billion.

In context, it is more than the net revenue of three of Nigeria’s commercial banks with over NGN3 trillion in assets.

A review of the company’s performance in the first six months in comparison to its last year period shows that the company’s fortune dwindled despite the easing in Nigeria’s economic hardship. Last year within the first six months, Jumia reported a net loss of EUR38 million compared to EUR52 million reported this year.

While Rocket Internet has reclassified Jumia as Jumia from the general merchandise grouping it carried in its portfolio. The parent company is also trying to recapitalise the local unit by putting more cash into its operations. As at last year, Jumia only had EUR4 million left in cash and cash equivalents. This year, about EUR24 million was said to be left in its books as cash.

As a rationale for the dwindling fortunes of the company, Rocket Internet has finally taken the bull by the horn. For the first time in a long while, Rocket Internet is now facing reality. The group said it recorded net impairments of EUR10 million on its Jumia operations.

their own words, “The impairments are attributable to the deteriorated business outlook for some regionally operated business models. Growing competition and increasing pressure on margins can be observed in the local markets. A prominent example of this development is the purchase of Souq.com (eCommerce platform based in Dubai) by Amazon in the first half of 2017”.

With its coterie of bluechip investors such as Orange, MTN, Millicom, AXA; it is safe to say Jumia has a strong backing from local and regional investors, but these investors are keeping mute with their pocket to save the company from imploding under the weight of debt.

The last raising achieved by Jumia was when CDC staked about GBP50 million to get a stake in the company. The cash from stake sale would soon dry up if the company does not go on an initial public offering in the next 12 months.

However, without reaching profitability, the IPO idea might be dead on arrival as investors would worry that Jumia has not developed a strong business model that can guarantee its sustainable existence.

SOURCE: https://brandspurng.com/jumia-moves-farther-from-profit-posts-usd61-million-loss-in-six-months/

They spend so much money on advertisement. Instead of Google's Pay per click, why not look for local website with heavy traffic that does flat rate advert for a month ?

This is definitely Jumia worldwide, It can't be Jumia Nigeria

This is serious.

CosmeticChemist:
They spend so much money on advertisement. Instead of Google's Pay per click, why not look for local website with heavy traffic that does flat rate advert for a month ?

A taya o

Aliexpress all the way

jumia can go to hell

$61 million dollars?

What’s the networth of the company as a whole?



I guess it’s jumia worldwide

Ok

When every naija boy and girl is an importer now. Who needs Jumia.

Weda na one chain or flash drive you buy from aliexpress, you're an importer.

And if you work for Jumia, be proactive. Start sending out CVs again. Cutting down workforce is a classical response to loss of profit in any setup.

They will only show you loss rather than profit also
Thieves

Not jumia Nigeria

Buhari is a failure. The only special one that brings recession whenever he's coming.

For Me konga has more customers and have better service

tripleY:
If there is anything Jumia is close to meeting, it is certainly not profit. Early this morning, Rocket Internet, the parent company of Jumia said the company suffered a net loss of USD61 million loss in six months.


To understand the extent of the number, a conversion using the real-time exchange rate to Naira (NGN) shows that Jumia made a net loss of NGN22 billion.

In context, it is more than the net revenue of three of Nigeria’s commercial banks with over NGN3 trillion in assets.

A review of the company’s performance in the first six months in comparison to its last year period shows that the company’s fortune dwindled despite the easing in Nigeria’s economic hardship. Last year within the first six months, Jumia reported a net loss of EUR38 million compared to EUR52 million reported this year.

While Rocket Internet has reclassified Jumia as Jumia from the general merchandise grouping it carried in its portfolio. The parent company is also trying to recapitalise the local unit by putting more cash into its operations. As at last year, Jumia only had EUR4 million left in cash and cash equivalents. This year, about EUR24 million was said to be left in its books as cash.

As a rationale for the dwindling fortunes of the company, Rocket Internet has finally taken the bull by the horn. For the first time in a long while, Rocket Internet is now facing reality. The group said it recorded net impairments of EUR10 million on its Jumia operations.

their own words, “The impairments are attributable to the deteriorated business outlook for some regionally operated business models. Growing competition and increasing pressure on margins can be observed in the local markets. A prominent example of this development is the purchase of Souq.com (eCommerce platform based in Dubai) by Amazon in the first half of 2017”.

With its coterie of bluechip investors such as Orange, MTN, Millicom, AXA; it is safe to say Jumia has a strong backing from local and regional investors, but these investors are keeping mute with their pocket to save the company from imploding under the weight of debt.

The last raising achieved by Jumia was when CDC staked about GBP50 million to get a stake in the company. The cash from stake sale would soon dry up if the company does not go on an initial public offering in the next 12 months.

However, without reaching profitability, the IPO idea might be dead on arrival as investors would worry that Jumia has not developed a strong business model that can guarantee its sustainable existence.

SOURCE: https://brandspurng.com/jumia-moves-farther-from-profit-posts-usd61-million-loss-in-six-months/

Why won't they suffer loss when you order for something and the bring what is not even close to what you saw online.

Jumia should just disband and leave Nigeria


Nigerians are no longer friendly with online shopping


too many bad stories

why buy something and wait days , when i can just get it same day from a store

and confirm if its ok

Jumia down.. Dstv next

DatLagboi:
Not jumia Nigeria

No o, it's Jumia west Germany

Why and how will they make profit, when they allow sellers to post and sell defective products to customers.

Go to their pick up centers, you will find defective and unclaimed goods lying there like abandoned warehouse

Well, its kuku not my handwriting sha . . . .

CosmeticChemist:
They spend so much money on advertisement. Instead of Google's Pay per click, why not look for local website with heavy traffic that does flat rate advert for a month ?

Exactly, for every 3 websites I log on, there's a Jumia ad lurking around somewhere.

Aliexpress don kill their market

Now wey I don begin sale on Jumia u people are now talking rubbish pls pay me my money o Jumia

CosmeticChemist:
They spend so much money on advertisement. Instead of Google's Pay per click, why not look for local website with heavy traffic that does flat rate advert for a month ?

I see them in almost every site I visit.

good 4 dem...rogues

See what Nigeria exchange rate can cause

Won sese bere ni

May God help us all.

How much dem get wey dem dey loose $61m.

They sha no wan pay tax

mastercee:
This is definitely Jumia worldwide, It can't be Jumia Nigeria

Exactly because Jumia Nigeria is making profit. Jumia Travels profit alone is huge let alone Jumia stores, real estate, online shopping, etc

Upon all the stuffs i buy from them? Oya nah make them close shop