This archive report was first published on 22 August 2019.
On August 22, 2019, Jumia Technologies AG revealed that it had identified dubious transactions accounting for approximately 4% of its sales in the first quarter of 2019.
The Berlin-based e-commerce company found that independent sales agents under its 'J-Force' sales platform worked with employees and sellers to make undeserved gains from commissions and seller fees.
As a result, Jumia fired some of its employees in Nigeria and suspended others pending investigations.
The company reported a €66.7 million loss in the second quarter of 2019, a 60% increase from €41.9 million in the first half of 2018.
Additionally, Jumia adjusted its Gross Merchandise Volume (GMV) to account for the fraudulent transactions, which inflated the retailer's GMV by around Ksh1.82 billion between the last quarter of 2018 and the first two quarters of 2019.
