Jumia, Africa’s largest e-commerce platform, faced another challenging year in 2024 as currency devaluations in Nigeria and Egypt—its two largest markets—eroded revenue, while shifting consumer trends and rising fulfilment costs compressed margins. Despite aggressive cost-cutting, the company remained unprofitable, reporting a $64.7 million loss for the year.
Jumia’s gross merchandise value (GMV)—the total value of goods ordered on its platform—fell 4% year-over-year to $720 million in reported currency but rose 28% in constant currency, a metric that strips out the impact of devaluations. Revenue dropped 10% to $167.5 million, though it grew 17% in constant currency.
The company’s marketplace revenue (from third-party sellers) declined 31%, while first-party sales fell 14%. Gross margins also contracted by 12%, reflecting weaker unit economics.
Jumia’s advertising and sales expenses declined 24%, aligning with its cost-efficiency drive, but fulfilment costs rose 11% due to a surge in orders, increasing pressure on margins.
Jumia expanded into smaller urban centres across its core markets, where it now generates 56% of total orders. However, this shift brought a higher volume of low-value transactions, contributing to the decline in GMV. Additionally, a drop in high-margin corporate sales in Egypt further impacted reported figures.
The company exited South Africa and Tunisia, reducing its operational footprint but incurring $10 million in one-time expenses. While this costs, it also contributed to a decline in total customer numbers.
Jumia’s active customer base fell to 8.3 million from 10 million in 2023, reflecting market exits and economic headwinds. However, quarterly active users rose slightly to 2.4 million from 2.3 million in December 2024, and its customer repurchase rate improved to 40%, signalling stronger retention among its remaining users.
Jumia closed the year with $133.9 million in cash, providing a liquidity buffer but underscoring the need for careful cash management given sustained losses and FX volatility.
A key cash drain was $13.5 million in supplier prepayments, which contributed to the company’s operating cash burn. If losses persist, Jumia may need to raise additional capital or accelerate efficiency measures to extend its cash runway.
JumiaPay transactions grew 11% year-over-year, reaching $3.3 million by December 2024. Adoption increased for food and product deliveries, reinforcing Jumia’s long-term bet on embedded financial services.
CEO Francis Dufay continues to push for cashless transactions, with JumiaPay positioned as a key pillar of future growth. However, it faces competition from fintech players like Flutterwave, Opay, and MTN’s MoMo, which dominate digital payments in Jumia’s key markets.
As Jumia enters 2025, the company is expected to continue cost-cutting while fine-tuning its unit economics in key markets. Analysts believe profitability remains distant unless Jumia substantially increases customer spending or reduces fulfilment costs.
“As we look ahead to 2025, I am optimistic about Jumia’s future,” said CEO Francis Dufay. “The business is stronger and more efficient than it was just two years ago, and I believe we have a good opportunity ahead by driving top-line growth and improving operational efficiencies.”
With its market exits, shifting customer mix, and persistent losses, Jumia faces a difficult road ahead. The company’s ability to preserve cash, refine its marketplace model, and grow high-margin segments will determine if it can finally achieve sustainable profitability.
