A few weeks after closing its subsidiary in Cameroon, Jumia has suffered a second setback in Tanzania, where the startup has just announced that it is ceasing operations.
Launched in 2012 in Nigeria by Frenchmen Sacha Poignonnec and Jeremy Hodara, Jumia has become a key e-commerce leader on the continent in just a few years. It now operates in 14 countries, where more than 4.8 million consumers use the platform daily.
2019 was a decisive year, as Jumia successfully listed on the New York Stock Exchange in April. This crucial move enabled the company to raise nearly $200 million to accelerate its development on the continent.
Nevertheless, fueled by funds, Jumia is still in the investment phase and suffers losses every year, demonstrating that it is struggling to achieve profitability despite the millions of orders it receives.
With these two successive closures announced in Cameroon and Tanzania, the leading e-commerce startup seems to be showing the first signs of weakness…
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