This archive report was first published on 25 October 2019.
On October 25, 2019, Jumia Kenya CEO Sam Chappate announced a partnership with the Posta Corporation, highlighting the success of Jumia Lending, a subsidiary that provides working capital to vendors with impressive sale statistics.
Since its inception, Jumia has sourced funding for hundreds of local vendors from banks, microfinance entities, and global financial institutions.
According to Chappate, the platform uses data from vendors' sales on Jumia to build a credit profile, which is then shared with multiple lenders competing to offer the best terms.
Chappate emphasized the importance of technology in monitoring sale statistics and using inferences as credit score parameters, stating, 'We know our vendors, we know the trustworthy ones and those who’ve been selling well and we use that data to de-risk the lending decision.'
The initiative is expected to benefit small-scale vendors doing business with Jumia, allowing them to focus on delivering quality products while their content sells itself.
