This archive report was first published on 14 May 2020.
Published on May 14, 2020, Jumia Technologies, the first Africa-focused tech start-up to go public, reported a 7% fall in first quarter revenue due to supply chain disruptions, particularly in China.
The company, which reached a market capitalisation of over $1.5 billion just days after it listed last April, has struggled to find its way, with its share price tumbling some 90% from its peak a year ago.
However, during an earnings call on Wednesday, founders Sacha Poignonnec and Jeremy Hodara expressed optimism about the company's prospects, citing unprecedented demand to join the Jumia platform, especially for named brands.
"We are seeing unprecedented demand to join the Jumia platform, especially for named brands," Poignonnec said.
The company has recently unveiled deals with major brands including Unilever, Procter & Gamble, Reckitt Benckiser, Nestle, Carrefour in Algeria, and grocery provider Twiga in Kenya.
Despite supply chain disruptions, Jumia reported lower cash burn and signs of a shift towards online shopping in Africa, with revenue in Morocco and Tunisia increasing by contrast, and sales slightly higher on a group level by mid-April.
