{"id":459453,"date":"2018-04-17T14:23:53","date_gmt":"2018-04-17T13:23:53","guid":{"rendered":"https:\/\/en.financialafrik.com\/?p=459453"},"modified":"2018-04-17T14:23:53","modified_gmt":"2018-04-17T13:23:53","slug":"jumia-the-african-amazon-still-in-the-red","status":"publish","type":"post","link":"https:\/\/www.financialafrik.com\/en\/2018\/04\/17\/jumia-the-african-amazon-still-in-the-red\/","title":{"rendered":"Jumia, the &#8220;African&#8221; Amazon, still in the red"},"content":{"rendered":"<div class=\"pdfprnt-buttons pdfprnt-buttons-post pdfprnt-top-bottom-left\"><\/div><div class=\"td-author-by\"><strong>By\u00a0<\/strong><strong>Jacques Leroueil<\/strong><\/div>\n<div><\/div>\n<p>With a focus on profitability for the time being, the pan-African online sales platform is aligning a new negative exercise.<\/p>\n<p>Like its big brother and American model Amazon, long deficit, the pan-African company e-commerce Jumia multiplies the years in the red. Posted in a statement Friday, from the Lagos continental headquarters, the results of fiscal 2017, are no exception. Sales of the online sales platform may well have increased by 11% in 2017 (to 93.8 million euros), its losses have not diminished, the gross operating deficit reaching 120 million euros, compared to 91.3 million euros a year earlier.<\/p>\n<p>A situation that does not seem to affect the optimism of two founding CEOs of the company, Sacha Poignonnec and Jeremy Hodara. &#8220;We have made great progress in 2017 with significant growth in our business. This growth demonstrates the vitality of our activities and the growing adoption of e-commerce by African consumers, &#8220;said the two French executives, quoted in the statement.<\/p>\n<p>The young company, which has more than 5 million products on sale at its sites, claims, moreover, an increase of more than 40% in the volume of products traded on its sites, for an overall value of over 500 million euros. in 2017. &#8220;A rapid evolution of turnover (multiplied by 10 since 2013) and which reflects a strategy of rapid market share gains at the expense of profitability,&#8221; says Lionel Nsabimana, an analyst at CDH Capital scholarship, in Kigali. It remains to be seen whether the main shareholders of the company (MTN, Goldman Sachs, Orange, Axa) &#8211; not listed on the stock exchange &#8211; will have the patience to wait for a hypothetical return on investment.<\/p>\n<p>Founded in 2012, Jumia first benefited from the support of Rocket Internet, the German incubator of billionaire brothers Samwer, known for launching start-ups replicating US successes. The e-commerce business is now present in 14 countries of the continent, Nigeria being its largest market.<\/p>\n<div class=\"pdfprnt-buttons pdfprnt-buttons-post pdfprnt-top-bottom-left\"><\/div>","protected":false},"excerpt":{"rendered":"<p>By\u00a0Jacques Leroueil With a focus on profitability for the time being, the pan-African online sales platform is aligning a new negative exercise. Like its big brother and American model Amazon, long deficit, the pan-African company e-commerce Jumia multiplies the years in the red. Posted in a statement Friday, from the Lagos continental headquarters, the results<\/p>\n","protected":false},"author":527180,"featured_media":459456,"comment_status":"open","ping_status":"closed","sticky":false,"template":"","format":"aside","meta":{"pmpro_default_level":"","_jetpack_newsletter_access":"","_jetpack_dont_email_post_to_subs":false,"_jetpack_newsletter_tier_id":0,"_jetpack_memberships_contains_paywalled_content":false,"translated_post_url_fr":"","_jetpack_feature_clip_id":0,"_jetpack_memberships_contains_paid_content":false,"footnotes":"","jetpack_publicize_message":"","jetpack_publicize_feature_enabled":true,"jetpack_social_post_already_shared":true,"jetpack_social_options":{"image_generator_settings":{"template":"highway","default_image_id":0,"font":"","enabled":false},"version":2},"jetpack_post_was_ever_published":false},"categories":[12008],"tags":[14751,3339],"class_list":["post-459453","post","type-post","status-publish","format-aside","has-post-thumbnail","category-stock-exchanges","tag-amazon","tag-jumia","post_format-post-format-aside","pmpro-has-access"],"yoast_head":"<!-- This site is optimized with the Yoast SEO Premium plugin v21.5 (Yoast SEO v27.8) - https:\/\/yoast.com\/product\/yoast-seo-premium-wordpress\/ -->\n<title>Jumia, the &quot;African&quot; Amazon, still in the red - Financial Afrik<\/title>\n<meta name=\"description\" content=\"Headed by Adama Wade and his team of 20 journalists, Kapital Afrik offers strategic and financial information to executives and managers. 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