Introduction:
jumia africankeneokafortechcrunch- Jumia Africa has made a mark for itself on the online scene with its great operations in 14 countries, After seeing a rough patch the company promises to revive itself with giant leaps. The article below will review the shareholder’s stakes in the company and the new gains.
Who Is Jumia?
Jumia is an African e-commerce business that operates in over 14 nations throughout the continent. Jumia, one of the biggest online retail platforms in Africa, was founded in 2012 . It offers a variety of goods, including electronics, clothing, accessories, home goods, and cosmetics. It gives African consumers easy access to goods and services through its online marketplace. Jumia aims to raise their standard of living.
Africa’s Jumia Revivng greatly
According to the most recent 13G/A filing made public by the asset manager, Baillie Gifford, the Edinburgh-based asset management company long known for its affinity for pre-IPO digital businesses, has cut its holdings in African e-commerce behemoth Jumia.
Baillie Gifford revealed ownership of 18.75 million Jumia shares, or 9.39% of the firm, in the filing. The asset management company reported 19.85 million shares in Jumia’s prior filing from a year prior, representing 10.06% of the company at that time. That represents a 5.50% drop in shares and a 0.67% decline in ownership.
Three years after the e-commerce behemoth went public, Baillie Gifford purchased Jumia shares in 2019. Since then, the Scottish mortgage trust company, which is Jumia’s largest institutional investor, has sold and purchased back a portion of its shares, with this most recent transaction being its steepest share decline to date. The biggest shareholder in the e-commerce platform is still Baillie Gifford.
The Scotland-based asset management company, which is well into its century, has backed prominent private and public digital firms like Amazon, Google, Salesforce, Tesla, Airbnb, Spotify, Lyft, Palantir, and SpaceX since the beginning. Additionally, it has made investments in commercial ventures in various regions, such as China’s NIO and Alibaba, as well as African internet companies Naspers and Jumia.
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Changes Jumia Made
After several years of reporting losses, Jumia announced management changes in November. By appointing Francis Dufay as acting CEO in place of co-founders Sacha Poignonnec and Jeremy Hodara, who left their co-CEO positions. As a result of the change, there were immediate cuts to many product lines and layoffs. This included few executives from the company’s Dubai branch. All of this is being done in an effort to help the business get the profitability it has been seeking.
Towards A Great Future
- The African e-tailer made significant strides in Q3 2022 to reduce losses by 13% from $52.5 million to $45.5 million.
- This is the lowest level in six quarters.
- Despite this development, public trust in the online retailer appears to be declining.
- Jumia’s shares fell to $3.88 per share after the news and its share price has dropped by 51% over the previous year.
- It currently trades just above $4, with a market valuation of $404 million.
- The online retailer had $284.7 million in liquid assets at the end of the third quarter, of which $104.3 million was in cash and cash equivalents.
Other Investors
Other significant investors, including as D. E. Shaw, Goldman Sachs, and Bank of America. They took a different approach and boosted their shares in the firm, owning 2.21%, 1.27%, and 1.40%, respectively. This is good news for Jumia.
Who is Kene Okafor?
Tage Kene-Okafor, is a TechCrunch reporter. He specialises in covering the startup and investment landscape in Africa and Nigeria. Prior to this, Tage performed the same beat for Techpoint Africa. Contact him at tage.techcrunch@gmail.com.
jumia africankeneokafortechcrunch
