eCommerce

AXIAN Telecom has acquired an 8% stake in Jumia as CEO Hassan Jaber says Jumia’s digital retail and fintech capabilities are key to driving economic inclusion in Africa.

Baillie Gifford, once Jumia’s largest investor, has dumped its entire stake in the eCommerce company, likely taking heavy losses and raising fresh questions about confidence in the eCommerce firm’s path to profitability.

Jumia continued its cost-cutting efforts in 2024, reporting a 10% decline in both revenue and operating loss despite recording an uptick in orders outside urban areas.

Ad spend on shopping apps in Africa rose 80% in 2024, driven by smartphone adoption and shifting habits. While competition intensifies, challenges like user retention and revenue growth persist.

Jumia’s Q3 2024 revenue fell 14%, hit by currency depreciation in key markets. However, a rise in orders and JumiaPay growth reflects strong customer engagement. The company’s cost-cutting and resource focus aim to drive profitability.

Wasoko and MaxAB’s merger boosts eCommerce capabilities, with former Cruise CTO Mo Elshenawy now on board as an advisor, driving AI-led solutions in pricing, product selection, and multi-service digital platforms.

Jumia has announced plans to close operations in South Africa and Tunisia by year-end 2024 to refocus on higher-growth markets across Africa. This strategic exit aims to enhance profitability and operational efficiency.

Egypt’s MaxAB, a B2B eCommerce startup, has announced that its co-founder and Chief Operating Officer (COO), Mohamed Ben Halim, will leave the company to embark on a new chapter. This comes nearly two months after MaxAB merged with Kenya’s Wasoko in August 2024.

South African eCommerce retailer Snatcher has ceased all operations and entered voluntary liquidation due to intensified competition and internal staff fraud.

Jumia has completed its at-the-market (ATM) offering of 20,227,736 American Depositary Shares (ADSs), raising $99.6 million. This follows a decline in share price and revenue in Q2 2024.

Jumia’s share price dipped on Thursday, August 8, 2024, continuing the decline that began on Tuesday, August 6, 2024, after the company reportedly missed its projected 2024 second-quarter revenues.

Alibaba’s online retail subsidiary, AliExpress, is set to launch operations in Ethiopia after finalising an agreement with the Ethiopian government.

Jumia’s Q2 2024 revenue fell 25% from Q1 and 17% from last year, but CEO Francis Dufay remains optimistic, citing increased customer loyalty and order growth.

Takealot, a South African eCommerce platform, is being exploited by duplicitous merchants who are taking advantage of some of the platform’s features to sell replicas and counterfeit goods, a report said.

Tracey Turner, co-founder of Copia, a Kenyan-based B2B eCommerce platform, is reportedly launching a new startup barely two months after her former company entered administration and 1 month after it announced shutdown.

The Nigerian government is considering eCommerce platform regulations and user cyber insurance, as part of the National Digital Economy and E-Governance Bill.

Shoprite has introduced an eCommerce platform in South Africa aimed at alleviating challenges encountered by small businesses, including Spaza shops.