Jumia, an electronic commerce platform recorded a Gross Merchandise Volume (GMV) growth of 58 percent leading to 102 percent growth in marketplace revenue for the first quarter ending March 31, 2019.
The firm also announced that Mastercard is investing about €50 million, in a partnership initiative into the business.
According to the co-Chief Executive Officers, Sacha Poignonnec and Jeremy Hodara, “we believe that Jumia is increasingly relevant for consumers and sellers in Africa. Looking ahead, we remain focused on our core operations, driving consumer adoption and engagement on our marketplace, increasing the penetration of JumiaPay, while continuing to improve our financial profile and making a sustainable impact on the continent”.
The e-commerce platform noted that the €50 million investment by Mastercard into Jumia, in a concurrent private placement with the Initial Public Offering, marked another milestone in the development of JumiaPay and a validation of its potential.
The firm said it is partnering with Mastercard on a number of initiatives, including the development and marketing of co-branded products (i.e., cards, virtual cards and quick response codes).
In the first quarter of 2019, Jumia said “our marketplace continued to gain depth and diversity as we focused on attracting quality sellers to our platform and providing our consumers with an expanding range of products and services. An example of this strategy is the partnership we announced this quarter with the technology leader Xiaomi. As part of this partnership, we are opening the Mi official store on our platform with the ability to offer a number of Xiaomi products on an exclusive basis”.
It added that “this demonstrates the attractiveness of Jumia as a destination of choice for high profile international brands, giving them access to millions of potential consumers in Africa with one partnership”.
Jumia explained that its strong GMV growth combined with the attractive value proposition it offers both sellers and consumers are a key engine of monetisation, “which we derive from diversified revenue streams such as commissions, fulfillment, Value Added Services, marketing and mdvertising services”.