Jumia’s revenue fell by 10% in 2024 to $167.5 million as the e-commerce company continued its cost-cutting efforts. However, its operating loss also declined by 10% year-on-year to $66 million, reflecting improved efficiency.
The company’s decision to exit the South African and Tunisian markets in 2023 allowed it to focus on larger economies such as Nigeria, Egypt, and Morocco. CEO Francis Dufay defended the move, stating that it helped refocus resources on markets with stronger potential for growth and profitability.
Despite these exits, Jumia’s annual active customers only declined slightly, from 5.7 million in 2023 to 5.4 million in 2024. Meanwhile, gross merchandise value (GMV) fell by 4% to $720.6 million, or 28% in constant currency, primarily due to currency devaluations and lower corporate sales in Egypt.
However, order volume grew by 6% to 22.7 million, with demand increasing outside major cities. Upcountry regions accounted for 56% of total orders in Q4 2024, compared to 49% in Q4 2023. Jumia East Africa’s Regional CEO, Vinod Goel, noted that strong demand outside Nairobi was driven by lower prices on essential goods compared to physical stores.
JumiaPay, the company’s digital payment platform, also recorded significant growth. Transactions rose by 20% year-on-year to 10.1 million, while total payment volume (TPV) edged up to $195.4 million. The company attributed this to an improved user experience and the expansion of JumiaPay on delivery, which encourages cashless payments.
Jumia expects GMV to grow by 10% to 15% in 2025, reaching between $795 million and $830 million. The company plans to expand further into non-urban areas, diversify its product selection with competitive pricing, and strengthen relationships with international sellers.
“Our priorities for the year are to build on this momentum by driving top-line growth and improving operational efficiencies.
To improve our path to profitability, we will continue enforcing cost discipline while enhancing operational and marketing efficiency,” Dufay stated.
By doubling down on cost efficiency and market expansion, Jumia aims to strengthen its position in Africa’s competitive e-commerce landscape while pushing toward long-term profitability.
