Jumia, Africa’s largest e-commerce platform, faced significant challenges in 2024 as currency devaluations in Nigeria and Egypt, its two largest markets, eroded revenue and compressed margins. Despite aggressive cost-cutting measures, the company remained unprofitable, reporting a $64.7 million loss for the year.

Jumia’s gross merchandise value (GMV) fell 4% year-over-year to $720 million in reported currency, but rose 28% in constant currency. Revenue dropped 10% to $167.5 million, though it grew 17% in constant currency.

The company’s marketplace revenue declined 31%, while first-party sales fell 14%. Gross margins also contracted by 12%, reflecting weaker unit economics.

The company’s advertising and sales expenses declined 24%, aligning with its cost-efficiency drive, but fulfillment costs rose 11% due to a surge in orders, increasing pressure on margins.

Jumia expanded into smaller urban centers across its core markets, generating 56% of total orders. However, this shift brought a higher volume of low-value transactions, contributing to the decline in GMV.

Jumia’s active customer base fell to 8.3 million from 10 million in 2023, reflecting market exits and economic headwinds. However, quarterly active users rose slightly to 2.4 million from 2.3 million in December 2024, and its customer repurchase rate improved to 40%, signalling stronger retention among its remaining users.

The company closed the year with $133.9 million in cash, providing a liquidity buffer but underscoring the need for careful cash management given sustained losses and FX volatility. JumiaPay transactions grew 11% year-over-year, reaching $3.3 million by December 2024, reinforcing Jumia’s long-term bet on embedded financial services.

As 2025 unfolds, the company is expected to continue cost-cutting while fine-tuning its unit economics in key markets. Analysts believe profitability remains distant unless Jumia substantially increases customer spending or reduces fulfilment costs.

CEO Francis Dufay remains optimistic about Jumia’s future, citing the company’s strengthened business and efficiency measures. 

However, the company faces a difficult road ahead, and its ability to preserve cash, refine its marketplace model, and grow high-margin segments will determine its path to sustainable profitability.