E-commerce platform Jumia Group has sunk deeper in the red, posting a Sh14.9 billion loss before tax and other costs in the year ended December compared to Sh11.3 billion a year earlier. The company blamed the loss on increased investment in the business.
In 2017, Jumia also reported a net loss of Sh12.4 billion for the year to December even as the business, which has operations in Kenya, recorded a drop in revenues and customer numbers. Jumia opened shop in Kenya in March 2013, having been founded in Nigeria a year earlier, and operates nine products across 23 African countries
“Jumia reached the threshold of 550 million visits across Africa in 2017. Other figures for 2017 include the number of products available on the platform which skyrocketed from 50,000 in 2012 to over five million in 2017,” said Jumia.
The loss does not give an indication of the company’s bottom-line as it excludes most of the standard business expenses including finance costs, depreciation and stock-based compensation.
Jumia’s online brands include Jumia, Jumia Food, Jumia Travel, Jumia Deals, Jumia House, Jumia Jobs and Jumia Car.
Jumia’s sales grew 41.8 per cent to Sh62.95 billion on the back of higher customer numbers.