Africa's largest eCommerce company, Jumia, said its losses for the first half 2018 financial year rose beyond estimate, a signal that the company has many more years to turn a profit.

Rocket Internet, the parent of the troubled eCommerce company said its share of the loss attributed to its 28% stake in Jumia was EUR13.6 million which means the estimated loss of the company for the half year was about EUR60 million.

The full loss for the period could not be ascertained because Rocket Internet has stopped showing the full profit or loss of the company.

Despite this sequence of disappointing bottom line for the eCommerce company's revenue for the period rose sharply by 62% year on year. While this is a very positive development, the company has just shown that it needed to exit or not even get into all the business it sold off in the last two years.

For the period under review, Jumia reported a gross margin value, was EUR 163.4m in Q2 2018, representing 61.9% YoY growth in absolute Euro terms (80.9% on constant currency basis). The number of active consumers reached 2.8m as of H1 2018, growing by 78.7% YoY.

The company said the growth "illustrates Jumia’s deep local expertise, its strong brand and its powerful platform." While this is a very impressive result, its EBITDA shows Jumia still has a long way to go in shedding off huge debt in its balance sheet.

Jumia said it will continue to focus on driving "more sellers and more products and services to the platform in order to increase the attractiveness to consumers in terms of selection and price. Moreover, as part of its continued commitment to driving attractiveness to consumers, Jumia has recently introduced a number of new digital payment solutions and services, such as airtime recharge or utility payments, which help consumers save time and money on more types of daily needs."

Source: https://pageone.ng/2018/09/20/jumia-sinks-deeper-into-losses-as-revenue-rises/

Buhari has killed the economy!
so please go ahead vite him in again
.smh

Maybe people are not buying from Jumia because they discover that many products beautifully advertised are substandard after buying. Why should they order again next time?

Copy-build-sell, profitability is not a priority. That's simply the way Rocket Internet, the promoters of Jumia run and operate businesses anywhere they go. They are just after traction, believing that the bigger company they copied will find them attractive and buy them. Very bad business model I must say.

Most online businesses will run, not just for profit.

Infact, there was a time online business owners only build businesses so they can sell them.