Africa-focused eCommerce company, Jumia Technologies AG said its losses for the first quarter rose by 16.4%.
With more than 60% of its revenue from Nigeria, Jumia said its negative adjusted EBITDA rose to €39.5 million compared to €30.2 million loss reported in 2018 within the same period.
Although, the result showed a marginal improvement in loss cutting at the online retailer, the result does not point to a path to profitability for the company.
A major positive for the company was the reported growth in its marketplace revenue by 102% on a year on year basis. Since 2018, Jumia has announced a change in its business model to marketplace system where sellers own virtually all the merchandise listed on the site.
It would be recalled that Jumia listed it’s shares on the 12th of March 2019, the company has also received criticisms that it misled investors on some key data in its IPO filings.
“Jumia delivered excellent results during the first quarter of 2019: strong GMV growth of 58% leading to 102% growth in marketplace revenue, year-on-year improvement of 356 basis points of Operating loss as a percentage of GMV and further development of JumiaPay, highlighted by the investment by and partnership with Mastercard”, said Sacha Poignonnec and Jeremy Hodara, co-CEOs of Jumia.
He added that: “We believe that Jumia is increasingly relevant for consumers and sellers in Africa. Looking ahead, we remain focused on our core operations, driving consumer adoption and engagement on our marketplace, increasing the penetration of JumiaPay, while continuing to improve our financial profile and making a sustainable impact on the continent.”
The company did not make any reference to allegations of Citron Research that Jumia misled investors in its IPO filings.
Jumia was previously owned by Rocket Internet, German technology investor that later sold major shares to global technology and mobile companies including MTN, Millicom, Orange, AXA, CDC. Global card payment giant, MasterCard recently invested $50 million in Jumia via a private place before the IPO.