With e-commerce adoption growing yearly, and with more Nigerians willing to trust online shopping, e-commerce companies like Jumia have hinted at plans to enlarge their coast.
Following the recent announcement from the company of its third-quarter 2022 financial report and the new strategy from the management team to see what the future holds, Jumia recorded substantial revenue and gross profit growth, according to the company’s financial earnings report.
The most recent statistics show that $50.5 million was generated in revenue in Q3 2022, an increase of 6% from the $47.6 million reported in Q2. This also represents an 18.4% increase from the $42.7 million reported in the same period last year.
Interestingly, Jumia’s acting CEO, Francis Dufay, laid out the new business strategy for the company during the Q3 2022 earnings call, stating that the recent focus on cost discipline and return on investment speaks to an ever-increasing need to make the company profitable soon.
He further stated that the company intends to bring more focus to the core business, allocating capital, resources and teams to main areas and projects with attractive returns on investments and clear ecosystem benefits.
“Jumia will deemphasise or cease projects and ventures that do not meet such criteria. In line with the above, the company will scale back First Party grocery offerings in geographies where this category remains sub-scale. In addition, Jumia Prime will be paused indefinitely from the 1st of January 2023 as the company looks to focus more resources in other areas of the business”, he added.
Going forward, the company is looking to continue strengthening its foothold in all the countries where it is currently operational.
“We have a clear focus for the next chapter of our journey and are taking decisive action to support our path to profitability. We will bring more focus to the business, directing our efforts and resources to projects and activities that deliver tangible value to our consumers, sellers and broader ecosystem participants. We are also enforcing tighter cost discipline and driving efficiencies across the full structure while enhancing the fundamentals of our core e-commerce business to drive user growth”, Dufay noted further.