LAGOS (Reuters) – E-commerce, a unicorn Jumia Technologies, which last year became Africa’s first tech company in New York city, will focus on the proof of it can turn a profit, after all, in 2019 at the latest, one of the co-founders, told Reuters.
A package is set before the episode is available on the Jumia warehouse in the city of Lagos, Nigeria, January 20, 2020. The photo was taken on January 20, 2020. REUTERS/Temilade Adelaja
Jeremy Hodara, said that the company wants to be able to respond to the charge of a platform and a network infrastructure, and increase revenues from services provided to third-party sellers on its online marketplace.
“We’re going to be very disciplined and very focused on the path to profitability,” Hodara told Reuters on Tuesday at the company’s offices in Lagos, nigeria.
Jumia, which hit a peak of nearly $4 billion, has seen its shares decline almost 70 percent since its initial public OFFERING last April.
They are tumbled after a short-seller Citron Research cast doubt on the sales figures, which will be a big blow to the confidence of the investors.
(Image: Jumia Stocks Battered After the IPO of the company – here).
At the end of last year, shut down the e-commerce and services in Cameroon and Tanzania, and it did not stop the food delivery to the government. Hodara declined to say whether or not other markets, may be facing the axe.
In the third quarter, the adjusted EBITDA loss widened to eur 45 million, an increase of nearly 27% from a year earlier, and, as it burned through cash, analysts have warned that it can be more of a challenge.
“It’s obviously a bit of a climb, but I think that in the end, if the investors believe that they are going to make money on the story, and they’re going to buy into it,” said Sarah Simon, a senior analyst at Berenberg. “But they have to prove it to you.”
Hodara declined to comment on the question of whether or Jumia is planned to be search out for more money, but said that the company is scaled up, the costs come down. Improvements to the algorithm have also been a help, ” he said.
JumiaPay, the company’s online payment platform, it is a very important part of the growth plan, Hodara said. The company is interested in information technology, and logistics network to third-parties, not even to sell on its e-commerce platform.
Jumia has it been tested on a small scale, but that said, wide – where, for example, an individual was able to build a package on Jumia hub in Lagos, nigeria and have it delivered at a friend’s house in Nairobi, it will eventually come out.
“We have a very important presence in the physical locations of the continent, where we will be able to inject packets, and packet information. This is unique,” Hodara said.
At the close of the term, the company is also looking to increase the extra services they are offering to sell, for a fee, in addition to the office space, marketing, and search engine optimization, though.
“A fantastic world, a world where you get zero commission, as a representative…and the whole monetisation is created from the additional services that you sell to the merchants,” he said.
Reporting by Libby George; editing by Joe Bavier and Jason Neely