Africa’s e-commerce giant Jumia, on Thursday released its fourth quarter (Q4) 2024 report, showcasing a mixed performance with operational improvements tempered by revenue decline.
Jumia reported a revenue of $167.5 million, down 10% year-over-year, compared with $186 million recorded in the previous year. The Gross Merchandise Value (GMV) dropped 12% to $206.1 million.
The company’s operating loss widened significantly to $17.3 million from $4.5 million in Q4 2023, with liquidity decreasing to $133.9 million.
Register for Tekedia Mini-MBA edition 17 (June 9 – Sept 6, 2025) today for early bird discounts. Do annual for access to Blucera.com.
Tekedia AI in Business Masterclass opens registrations.
Join Tekedia Capital Syndicate and co-invest in great global startups.
Register to become a better CEO or Director with Tekedia CEO & Director Program.
Despite the negative trends, Jumia also recorded positive developments, which include the following
Operational Strength: Jumia saw 18% growth in Physical Goods Orders (excluding South Africa & Tunisia) and 8% growth in Quarterly Active Customers without increasing marketing costs.
Strategic Expansion: The company expanded in secondary cities and strengthened supply from international sellers, which accounted for 31% of items sold in Q4.
Black Friday Success: Strong sales performance underscored improving customer demand and product expansion.
International seller contribution rose to 31% of items sold, and Net Promoter Score improved, indicating stronger customer satisfaction.
Customer repurchase rates increased by 375 basis points.
Full-year 2024 operating loss improved by 10% YoY, decreasing to $66.0 million from $73.3 million in 2023.
Commenting on the report, Jumia’s CEO Francis Dufay expressed satisfaction, noting that he is proud of what the company accomplished in 2024.
He said,
“I am proud of what we have accomplished in 2024. We saw robust growth in secondary cities, expanded our supply from international sellers, and further improved marketing efficiency. In the fourth quarter, excluding South Africa and Tunisia, we achieved strong acceleration in our key usage metrics, with Physical Goods Orders and Quarterly Active Customers increasing by 18% and 8%year-over-year, respectively, without an increase in marketing costs. We closed the year on a high note with strong Black Friday sales, underscoring that our strategy is working”.
Dufay further expressed optimism about 2025 noting that the business is stronger and more efficient than it was just two years ago. He noted that Jumia is well-positioned to deliver sustainable growth and achieve profitability.
Notably, despite financial setbacks, Jumia made notable operational strides. The 18% order growth in core markets achieved without increased marketing spend, demonstrates improving unit economics and platform efficiency. Additionally, expansion into secondary cities now accounts for 56% of total orders, up from 49%, marking a strategic push for market penetration.
The rise in international sellers to 31% (a 9.5 percentage point increase YoY) signals a more diversified product selection while reducing inventory risk and working capital needs. This shift mirrors marketplace strategies successfully deployed in other emerging markets, potentially leading to stronger gross margins over time.
2025 Outlook
Jumia projects a 15-20% increase in physical goods orders, with GMV estimated between $795-830bmillion. The company also expects a loss before income tax of $65-70 million, reflecting a 28-33% reduction in losses.
To achieve these targets, Jumia is focusing on expanding cashless payments through JumiaPay and optimizing logistics. However, execution risks and currency volatility remain potential challenges. While operational efficiency is improving, sustained growth will depend on the company’s ability to manage costs and drive profitability in the coming quarters.
The company also plans to enhance its product assortment with competitive pricing and strengthen relationships with international sellers.
“The business is stronger and more efficient than it was just two years ago, and I believe we have a good opportunity ahead of us. We plan to double down on expansion outside the main urban centers, expand our product assortment with competitive pricing, and strengthen relationships with international sellers. To improve our path to profitability, we will continue to enforce cost discipline and enhance operational and marketing efficiency” Jumia wrote.