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 on the New York Stock Exchange, has been struggling to find its footing. Despite reaching a market capitalisation of over $1.5 billion just days after listing last April, its share price has tumbled some 90% from its peak a year ago.
However, the company's latest earnings report shows a glimmer of hope. Revenue fell to 29.3 million euros, but the company saw lower cash burn and signs that lockdowns were hastening a shift towards online shopping in Africa.
Founders Sacha Poignonnec and Jeremy Hodara expressed optimism during an earnings call, citing unprecedented demand to join the Jumia platform, especially for named brands. They believe this trend will accelerate the shift towards online shopping.
The company has recently partnered with major brands, including Unilever, Procter & Gamble, and Nestle, to offer cashless payment and bypass crowded shops. As lockdowns ease, Jumia hopes to capitalize on the increased allure of its business model.
