• Latest
  • Trending
Jumia reports $20m Q3 operating loss amid revenue decline

Jumia to rebuild investors’ confidence amid fierce competition from Chinese rivals

June 17, 2025
Call of Duty movie: Paramount, Activision strike deal for live-action adaptation

Call of Duty movie: Paramount, Activision strike deal for live-action adaptation

September 5, 2025
Meta Brings Back Facebook Poke with Emojis and Streaks

Meta Brings Back Facebook Poke with Emojis and Streaks

September 5, 2025
Know why they’re calling: Truecaller launches AI-powered insights

Know why they’re calling: Truecaller launches AI-powered insights

September 5, 2025
Visa harnesses local partnerships to launch Visa Pay in DR Congo

Visa harnesses local partnerships to launch Visa Pay in DR Congo

September 5, 2025
Betika denies recent reports of security breach

Betika denies recent reports of security breach

September 5, 2025
10 things you can actually buy with crypto in Africa

10 things you can actually buy with crypto in Africa

September 5, 2025
CBE seals deal with Botim to enhance remittance services for Ethiopians living in UAE

CBE seals deal with Botim to enhance remittance services for Ethiopians living in UAE

September 5, 2025
Nigeria Senate, SIBAN push for crypto regulation to boost digital economy

Nigeria Senate, SIBAN push for crypto regulation to boost digital economy

September 5, 2025
Mamo Mihretu Resigns as Governor of Ethiopia’s Central Bank

Mamo Mihretu Resigns as Governor of Ethiopia’s Central Bank

September 5, 2025
Paratus Group introduces first private mobile network using LTE and 5G in Namibia

Paratus Group introduces first private mobile network using LTE and 5G in Namibia

September 5, 2025
Your one-stop tech hub! Get the latest updates on AI, cybersecurity, fintech, and emerging technologies.
  • Tech News
    • Africa Tech
    • Global Tech
    • Tech with Pelumy
    • Tech Careers
    • General News
    • How To
    • Reviews
  • Cryptocurrency
  • Fintech
  • Startups
  • Ai
No Result
View All Result
  • Tech News
    • Africa Tech
    • Global Tech
    • Tech with Pelumy
    • Tech Careers
    • General News
    • How To
    • Reviews
  • Cryptocurrency
  • Fintech
  • Startups
  • Ai
No Result
View All Result
Techpression
No Result
View All Result
Home Business

Jumia to rebuild investors’ confidence amid fierce competition from Chinese rivals

Oluwatosin Adeyemi by Oluwatosin Adeyemi
June 17, 2025
146 4
0
Jumia reports $20m Q3 operating loss amid revenue decline

Jumia reports $20m Q3 operating loss amid revenue decline

465
SHARES
Share on FacebookShare on TwitterWhatsAppTelegram

The CEO of the e-commerce company Jumia stated that as it intensifies its efforts to turn a profit in the face of growing competition from Chinese rivals such as Temu and Shein, it must “rebuild credibility” with investors.

Francis Dufay told the Financial Times in an interview published on Sunday that the pan-African group had a “history” with the stock market, saying that “too much had been promised and not enough” had been delivered since it went public in New York six years ago, becoming the first tech “unicorn” on the continent with a valuation of over $1 billion.

“My focus is very simple: we have to deliver the numbers. The target is break-even in 2027,” he said.

Jumia’s struggles

Jumia’s share price has dropped nearly 90 percent since its 2019 IPO, and it has dropped more than 60 percent in the last year alone.

RelatedPosts

Jumia nominates Axian Telecom founder to board amid talk of a takeover

Nigeria partners with Jumia to boost e-commerce sector

Q2 2025: Jumia reduces losses, reports 25 per cent increase in revenue

Baillie Gifford, the company’s former largest institutional investor, sold off its remaining stake last month because it has had trouble persuading investors of its strategy.  Jumia is currently worth around $400 million.

In the group’s most recent attempt to restructure, Dufay, who assumed control of the company in late 2022 after the removal of its co-executives and entire management board, has been aggressively cutting costs over the past two and a half years, including slashing jobs and leaving unprofitable markets.

“Between now and 27, we’ll just deliver the numbers, and that will be a lot more impactful than big speeches or anything, and the markets will recognise it as we rebuild our credibility,” he added.

Since Dufay took over in 2022, the company has decreased its losses, although it still reported a $206 million loss at that time.  Pre-tax losses are expected to range from $50 million to $55 million this year, compared to a $97.6 million loss in 2024.

Fierce competition from Temu and Shein

Temu and Shein, two Chinese low-cost behemoths, are increasingly posing a threat to Jumia, which has led e-commerce in many of its markets, and is under pressure to generate a profit.

Jumia’s goal has been to get more Chinese retailers to sell their goods on its online store.  A team of roughly 70 individuals is currently working in Shenzhen to find new traders.

He stated that one-third of Jumia’s overall sales volume is made up of the quantity of goods from Chinese vendors, which include appliances, cosmetics, and clothing.

“We believe we can fight them,” said Dufay of Temu and Shein. “We have . . . more diverse product offerings in categories they can’t offer, we’re more tailored to the market and we have competitive productive offerings in their categories from our international sellers.”

Jumia’s cutting cost strategy

Jumia’s business now operates in nine countries, down from 14 when it went public, as it has backed off from its ambitious expansion plans.

According to Dufay, the business will instead focus twice as much on its current markets, including catering to more low-income clients outside of larger cities.

He claimed that Jumia, which presently only operates a comparatively small business, had the “greatest potential in terms of growth and profitability” in the Nigerian market.  He added that Kenya, Uganda, and Egypt also had room to grow significantly.

Despite its explosive growth in the last ten years, e-commerce still accounts for a very small portion of total retail sales in Africa.  Low internet usage, logistics, and payment issues—many people lack bank accounts or credit cards—are among the difficulties.

The prospects for e-commerce in Africa have also been hampered by high inflation and currency depreciation.

Efforts to convince investors

According to Dufay, he has been “talking to investors and having roadshows” in an effort to convince them of the company’s intentions.

The African telecom company Axian, which has operations in nine African nations, declared last month that it would buy an 8 percent share in Jumia.  It raised its investment to 9.2 percent this week.

According to Dufay, Axian was a “serious investor” whose consumer credit and fintech ventures were “complementary to ecommerce.”

Dufay is also hopeful that the company will benefit in the medium run from the excess supply coming from Asian producers who have been impacted by trade tariffs imposed by US President Donald Trump.

“The exports from China and Southeast Asia will inevitably slow down and it means they will have look for new markets,” he said.

“There’s a big, growing undersupplied market here in Africa. Jumia is the middle man and we could be in a good position to tap that market and serve our customers better.”

Tags: investorsJumia
Oluwatosin Adeyemi

Oluwatosin Adeyemi

Oluwatosin Adeyemi is a seasoned writer with 5+ years of experience. He holds a degree in Animal Science from Olabisi Onabanjo University. A hardworking and creative individual with a passion for teamwork and self-improvement.

No Result
View All Result

Quick Links

  • Tech News
  • Cryptocurrency
  • Fintech
  • Startups
  • Business

Follow Us:

  • facebook
  • instagram
  • Twitter(X)
  • Linkedin
  • YouTube
  • About
  • Advertise
  • Privacy & Policy
  • Contact

© 2025 Techpression.com -Techpression Media Limited

Welcome Back!

Login to your account below

Forgotten Password?

Retrieve your password

Please enter your username or email address to reset your password.

Log In

We are using cookies to give you the best experience on our website.

You can find out more about which cookies we are using or switch them off in .

No Result
View All Result
  • Home
  • Tech News
    • Tech Careers
    • Africa Tech News
    • Global Tech News
    • How to
    • Reviews
  • Startups
  • Fintech
  • Cryptocurrency
  • AI
  • Tech Tv
  • Featured

© 2025 Techpression.com -Techpression Media Limited

techpression.com
Powered by  GDPR Cookie Compliance
Privacy Overview

This website uses cookies so that we can provide you with the best user experience possible. Cookie information is stored in your browser and performs functions such as recognising you when you return to our website and helping our team to understand which sections of the website you find most interesting and useful.

Strictly Necessary Cookies

Strictly Necessary Cookie should be enabled at all times so that we can save your preferences for cookie settings.

3rd Party Cookies

This website uses Google Analytics to collect anonymous information such as the number of visitors to the site, and the most popular pages.

Keeping this cookie enabled helps us to improve our website.