Jumia posts 24.7% revenue growth in 2022 but continues to lose money 

February 16, 2023
2 min read

eCommerce giant, Jumia, has released its financial results for Q4 2022 and the full year ended December 2022.

Quarterly active consumers for Q4 22 was 3.2 million, a 15% drop from the 3.8 million recorded during the same period in 2021. Jumia attributes this development to the economic environment in the countries they operate, limiting how much users could spend. It also points to a deliberate reduction in how it promoted product categories with "challenging unit economics."

Orders, gross merchandise value, and total payment value also witnessed declines from Q4 2021. Orders reduced from 11.3 million in Q4 21 to 9.9 million in Q4 22, GMV went from 330.1 million in Q4 21 to 283.1 million, while TPV went from 90.5 million to 73.9 million.

The company, however, saw its revenue experience a 7.1% year-on-year increase going from 62 million in Q4 21 to 66.5 million in Q4 22. Gross profit increased 21.9% year-on-year even as operating loss witnessed a 41% drop year-on-year.


Last year, the company disclosed that co-founders and co-CEOs, Jeremy Hodara and Sacha Poignonnec would be leaving their roles, while Francis Dufay would take over as acting CEO. Dufay's appointment has now been made permanent, a decision the company says reflects its belief in his ability to steer it towards profitability.

Before joining Jumia in 2014, Dufay worked with consulting firm, McKinsey. Prior to his appointment as acting CEO, he served as the CEO of the business' Ivorian division.

Jumia also reported certain decisions it had taken to speed up its move towards profitability, including shutting down Jumia Prime and suspending its logistics-as-a-service product line in certain locations.

Although TPV for JumiaPay saw an 18% year-on-year reduction in Q4 22, it generally saw an increase overall, growing 8.4% from 2021. Transactions on the JumiaPay app also dropped 26% from the last quarter of 2021 as the company reduced marketing investments for the product. Regardless, it reports that 29% of orders placed on Jumia in Q4 22 were completed using the JumiaPay app.

Going forward, Jumia revealed that it would expand its payments services for off-platform payment processing in Nigeria and Egypt. In May 2022, it revealed that it had acquired a payment service solution provider (PSSP) licence in Nigeria. It also acquired a payment licence in Egypt which it plans to leverage as it drives increased usage of JumiaPay. Revenues grew by 24.7%, from 177.9 million in 2021 to 221.9 million in 2022. Marketing and Advertising revenue experienced the most growth, increasing 67% year-on-year.

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Accidental writer, covering Africa's startup landscape and its heroes. Find me on Twitter @chigo_nwokoma.
Accidental writer, covering Africa's startup landscape and its heroes. Find me on Twitter @chigo_nwokoma.
Accidental writer, covering Africa's startup landscape and its heroes. Find me on Twitter @chigo_nwokoma.

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