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 loss in the first quarter of 2019.
The company attributed the loss to improper orders placed and subsequently canceled, which inflated its order volume and led to a KSh1.82 billion loss between the last quarter of 2018 and the first two quarters of 2019.
As a result, Jumia has adjusted its Gross Merchandise Volume (GMV) to account for the fraudulent transactions and suspended employees involved pending investigations.
The company's losses increased by 60% from KSh4.8 billion in the first half of 2018 to KSh7.6 billion in the first half of 2019, prompting a massive fall in its stock price.
