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Jumia Suffered N53 Billion Loss In 2017 - Business (2) - Nairaland

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Re: Jumia Suffered N53 Billion Loss In 2017 by airsaylongcon: 8:29pm On Apr 13, 2018
adanny01:
They should find out what is wrong. Cos i do shop alot from Jumia and have gotten better bargains than i would have in the open market, not to talk of risks in getting substandard prices.

My discouragement is the lack of pay on delivery even though my last refund was done in less than 24hrs.

I trust Jumia and wish them well.

Those "better bargains" are were the losses are

1 Like

Re: Jumia Suffered N53 Billion Loss In 2017 by Houseofglam7(f): 8:29pm On Apr 13, 2018
undecided
Re: Jumia Suffered N53 Billion Loss In 2017 by omocalabar(m): 8:29pm On Apr 13, 2018
sai baba

1 Like

Re: Jumia Suffered N53 Billion Loss In 2017 by shedy03(m): 8:30pm On Apr 13, 2018
booblacain:
What's the cause of these losses?
may be recession/change, lol.

1 Like

Re: Jumia Suffered N53 Billion Loss In 2017 by AnthonyAk(m): 8:30pm On Apr 13, 2018
Damn atleast the owners sold early. need o buy back for cheap and re strategize
Re: Jumia Suffered N53 Billion Loss In 2017 by Nobody: 8:34pm On Apr 13, 2018
jerflakes:


I'm confused

They don't sell anything

They just link buyers to sellers

So how did they lose?

Really?

5 Likes 1 Share

Re: Jumia Suffered N53 Billion Loss In 2017 by mfm04622: 8:34pm On Apr 13, 2018
LastSurvivor11:
No b who chop well dey buy something..
Huge loss which is obviously leading to job loss..

If you want to make money jumia, start selling important grasses from Brazil, or Ak47 or you help the good patriotic people of Nigeria to send the daura dullardihio back to his cows..

Jumia is an African country, operating outside of Nigeria. So all those you listed affected their operations in other countries? Grow up, wise up

1 Like

Re: Jumia Suffered N53 Billion Loss In 2017 by overboard(m): 8:38pm On Apr 13, 2018
wontiboje:
Despite several cuts and tweaks to its business model and structure, it appears all is not still well with Jumia.

This is because, after two years of pressure and record losses, Jumia said it losses rose beyond forecast for the full year 2017

Jumia, Africa's largest eCommerce company said it made a net loss of N53.3 billion for the full financial year of 2017. This is a major negative and huge difference compared to N40.5 billion reported in 2016.

Full-year revenue for Jumia came in at EUR93.8 million compared to EUR89 million reported in 2016.

There are various sides to this result and the more we look at the company's summary result released by Rocket Internet, its parent company, the more we see more signs of worry for Jumia going forward.

Source: https://pageone.ng/2018/04/13/jumia-losses-parent-company/

Various structural changes have been applied to the business model of Jumia in the last three years. On August 30, 2016 Africa eCommerce Holding GmbH, the holding company of Jumia, was merged into Africa Internet Holding GmbH (formerly trading under Africa Internet Group).

In its usual flowery comment, Rocket Internet said in its official statement that:

[/b]In June 2016, all business models of Africa Internet Group were renamed under the Jumia brand. [b]

It is now very clear that Rocket Internet plans to sell off the company via an IPO was a sound decision given the fact that after five years, there are no signs that Jumia would break-even before it caves-in.

Konga, Jumia's arch-rival has also witnessed its near-end before it was sold to Zinox Group for undisclosed amounts.

While Kinnevik and Naspers have not disclosed the terms of the transactions, there are feelers that the company was sold for a ridiculously low amount with up to 99% loss on equity.

@ the bolded is a major no, no, no for those that know i.e. grand [/b]positioning[b] error! Selah. Reach me for details.
Re: Jumia Suffered N53 Billion Loss In 2017 by Elin: 8:38pm On Apr 13, 2018
grin
grin
grin

If Only Jumia have 53Million of their own! undecided grin

Who else can relate cheesy?

2 Likes

Re: Jumia Suffered N53 Billion Loss In 2017 by LordKO(m): 8:39pm On Apr 13, 2018
I still maintain my stance that they're running a poor e-commerce model - pre 2000 model - they'll continue to make losses until they do the needful.
Re: Jumia Suffered N53 Billion Loss In 2017 by Nobody: 8:41pm On Apr 13, 2018
mfm04622:


Jumia is an African country, operating outside of Nigeria. So all those you listed affected their operations in other countries? Grow up, wise up


Please which is Jumia capital ? I need to know please

2 Likes

Re: Jumia Suffered N53 Billion Loss In 2017 by Nobody: 8:43pm On Apr 13, 2018
LordKO:
I still maintain my stance that they're running a poor e-commerce model - pre 2000 model - they'll continue to make losses until they do the needful.

Can you shield more light on this please, may be we can learn a couple of things from yoy

1 Like

Re: Jumia Suffered N53 Billion Loss In 2017 by ncoolsome(m): 8:44pm On Apr 13, 2018
NaijaMutant:
All I want to say is that Buhari's economy is a cursed economy undecided


U also sound cursed....Where was Nigeria mentioned in the write up or ur fish brain thinks such loss is only in Nigeria

2 Likes

Re: Jumia Suffered N53 Billion Loss In 2017 by Flye: 8:45pm On Apr 13, 2018
Ok
Re: Jumia Suffered N53 Billion Loss In 2017 by Lexusgs430: 8:48pm On Apr 13, 2018
micky90:
...oshe accountant to bad, buh how does a coy making huge losses be compared to been financially over geared... Need an explanation bro.

Accounting Lesson (AC001)

In simple terms, they have bitten more financially than they can chew (fish bone stuck in throat effect).....

Borrowed too much money, punitive interest rate, unnecessary expansion, unrealistic staffing ratios, higher than usual wage structure, bad business model, illegal financial drawdowns etc etc etc


We continue AC001 on Monday... Report to class @ 0600 hrs........

12 Likes

Re: Jumia Suffered N53 Billion Loss In 2017 by IYANGBALI: 8:49pm On Apr 13, 2018
Na my head catch dem. Dem never see anything

1 Like

Re: Jumia Suffered N53 Billion Loss In 2017 by IamaNigerianGuy(m): 8:49pm On Apr 13, 2018
jerflakes:


I'm confused

They don't sell anything

They just link buyers to sellers

So how did they lose?

Very good point.

Even taking into account their personnel and running costs, losses shouldn't be so large unless they are engaged in funny accounting

3 Likes

Re: Jumia Suffered N53 Billion Loss In 2017 by LordKO(m): 8:59pm On Apr 13, 2018
gadgetsngs:


Can you shield more light on this please, may be we can learn a couple of things from yoy

People are paid for what they do with what they know - no one will pay you just because you know something.

Thanks.
Re: Jumia Suffered N53 Billion Loss In 2017 by yesloaded: 9:05pm On Apr 13, 2018
jerflakes:


I'm confused

They don't sell anything

They just link buyers to sellers

So how did they lose?
it goes beyond that Sir. they spent money on adverts. maintenance of website, logistic(freight), warehousing of goods, payment of staffs etc

The biggest mistake of jumia/konga is their stupid POD

4 Likes

Re: Jumia Suffered N53 Billion Loss In 2017 by micky90(m): 9:06pm On Apr 13, 2018
Lexusgs430:


Accounting Lesson (AC001)

In simple terms, they have bitten more financially than they can chew (fish bone stuck in throat effect).....

Borrowed too much money, punitive interest rate, unnecessary expansion, unrealistic staffing ratios, higher than usual wage structure, bad business model, illegal financial drawdowns etc etc etc


We continue AC001 on Monday... Report to class @ 0600 hrs........
....but using gearing doesn't mean all those u have up there... Just a bad financial management would have solve d the riddle Prof.
Re: Jumia Suffered N53 Billion Loss In 2017 by saudatu(m): 9:08pm On Apr 13, 2018
Elin:
grin
grin
grin

If Only Jumia have 53Million of their own! undecided grin

Who else can relate cheesy?

I do bros! grin grin
Re: Jumia Suffered N53 Billion Loss In 2017 by favourbaby: 9:11pm On Apr 13, 2018
Sorry o!

Me self I suffer plenty loss for una hand in 2015. Una go put fine fine pictures for net, when person place order and pay the end result go be rubbish!
Re: Jumia Suffered N53 Billion Loss In 2017 by saudatu(m): 9:12pm On Apr 13, 2018
yesloaded:

it goes beyond that Sir. they spent money on adverts. maintenance of website, logistic(freight), warehousing of goods, payment of staffs etc

The biggest mistake of jumia/konga is their stupid POD

Hmm… you've said it all brother Mr. V
Re: Jumia Suffered N53 Billion Loss In 2017 by Lexusgs430: 9:16pm On Apr 13, 2018
micky90:
....but using gearing doesn't mean all those u have up there... Just a bad financial management would have solve d the riddle Prof.


I said part of their issues would be financial over - gearing. Amongst the overgear, fit the aforementioned and more, you would see why they are having huge financial woes....
Re: Jumia Suffered N53 Billion Loss In 2017 by Follygunners: 9:16pm On Apr 13, 2018
This is always the problem when there's a lack of financial sustainability and adequate leverage capabilities within a poor economic atmosphere... Foolish org.

They should have based their business model around the majority/poor average 9ja instead of the few rich ones. Trying to pull a Jeff Bezos, right? Foolish pple!
Re: Jumia Suffered N53 Billion Loss In 2017 by Troublemaker007(m): 9:25pm On Apr 13, 2018
uzeba:
53 million or 53 billion...
the company burn??

HahahaHahaha

2 Likes

Re: Jumia Suffered N53 Billion Loss In 2017 by tunary(m): 9:27pm On Apr 13, 2018
Na so jumai get money
meaning they are worth hundreds of billions of NGN or trillions
Re: Jumia Suffered N53 Billion Loss In 2017 by biggy26: 9:28pm On Apr 13, 2018
booblacain:
What's the cause of these losses?
Bad govt policies that led to a sharp drop in the purchasing power of Nigerians.
Re: Jumia Suffered N53 Billion Loss In 2017 by bionixs: 9:31pm On Apr 13, 2018
DonPiiko:
Sorry jumia no cry, I also suffered losses and heartbreaks I don move on
don't mind them. when they were doing wayo wayo BLACK FRIDAY,shebi It was sweeting them?
Re: Jumia Suffered N53 Billion Loss In 2017 by collinsVP: 9:32pm On Apr 13, 2018
micky90:
...oshe accountant to bad, buh how does a coy making huge losses be compared to been financially over geared... Need an explanation bro.

When capacity is underutilized due to market limits and other inhibitions
Re: Jumia Suffered N53 Billion Loss In 2017 by billyG(m): 9:32pm On Apr 13, 2018
How did they even make #53bn ind 1st instance is it not only comissions they collect frm buyers & sellers.Twice they fail 2 delivered goods i ordered.i hope they will not go bankrupt?
Re: Jumia Suffered N53 Billion Loss In 2017 by SleakBuzzPR: 9:37pm On Apr 13, 2018
jerflakes:


I'm confused

They don't sell anything

They just link buyers to sellers

So how did they lose?

They handle the logistics....thats how they lose money.

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