Earlier this morning, one of Africa biggest e-commerce closes down business in Cameroon, making it the third one after the company did same to Congo and Gabon sometimes back.
According to the report from the management of the company, it stated that it’s transaction model is not suitable for the country, following the socio-economy and political crisis, hence the shut down.
Though it promises to come back, but the chances are very slim, following the report the Company released barely a week back; the third quarter report (Q3), which revealed that despite the fact that the company had a high influx of customer of about 636,000, it suffered a huge setback of $55milliion, bringing its total loss to a total of $108.1million, and #1billion since inception, so there are speculations that the coming back may be not be happening soon.
Meanwhile all these losses are due to the fact they want to increase their subsidiaries and outlet, which of course is necessary for a new company.
Jumiapay, a subsidiary of Jumia which deals with transactions, and payment is growing rapidly, and the reason being that the management pulled their whole weight behind it, as stated by Sacha Poignonnec and Jeremy Hodara; co-chief executive Officers.
Although before 2018, Jumia has strong growth and high profitability and a lot of subsidiaries spread across the Africa countries, but the declination started last year and till now.
This action of shutting down the country office was said to be brutal as there was no public announcement or any word from the CEO prior the effects.