First party revenue was taken down by 35% and they want it down 100%.
It's the first party revenue purposeful reduction that has the rest looking bad.
If this didn't happen, it was a problem.
Now the CEO has finally said we are finally able to go after growth.
/2
$JMIA
With 560M EUR in cash (88M in Apr), this is a $1.5B EV investment in Africa’s e-commerce, fintech, logistics, advertising, food delivery.
This story is unfolding as it should.
Cut costs, turn margins positive, raise funds, then grow.
'Then grow' is now up per CEO.
$JMIA
Stock up 30% off lows of premarket trade and I think 👆 facts is part of reason but also this:
Fintech
Continued to expand financial services marketplace activities through JumiaPay.
We leverage the business and transactional data of our
sellers to help...
/4
$JMIA
...financial institutions pre-score their credit on an anonymized basis and offer them short term loans and working capital financing.
...then this...
/5
$JMIA
In the first quarter of 2021, 380 loans were disbursed as part
of this initiative, 90% more than in the first quarter of 2020, benefiting 291 unique sellers, 62% more than in the first quarter of 2020.
This is a serious fintech business play, not just Jumia Pay.
/6
$JMIA
Thread continued
On a constant currency basis, marketplace revenue was up 16%, while gross profit was up 21% year over year.
/7
$JMIA
During the quarter -- over 750,000 packages were delivered more than the total handled in 2020 as part of the pilot.
/8
$JMIA
CFO
"Pretty much every industry and service sector faces logistics pain points in Africa, and we are uniquely positioned to help address these pain points which makes it a meaningful potential revenue stream going forward."
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