Africa-focused online marketplace Jumia Technologies highlighted signs of accelerating growth in its third-quarter earnings call on Tuesday, November 16.
In terms of numbers, orders for the quarter jumped 28 percent year-on-year to an all-time high of 8.5 million, the fastest growth rate in the past seven quarters, according to a Press release.
Annual active consumers grew 8% to 7.3 million, and due to growth in consumers and orders, the gross value of goods (GMV) also increased 8% this quarter, reaching $ 238 million , according to the press release.
âWe have this vast untapped market opportunity on both the e-commerce and payments front, and in this context, we really want to make Jumia the destination of choice for consumers, and we want to make JumiaPay a champion of payment and FinTech on the continent in the coming quarters â, co-CEO Sacha Poignonnec said on call.
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The Nigeria-based company said in the statement that transactions on JumiaPay, the company’s payment unit first introduced in 2016, increased 34% to 3 million in the third quarter, the growth rate of fastest transactions in the last five quarters, mainly due to accelerating volume growth. in the meal delivery category.
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Overall, 35.7% of total orders placed on the Jumia platform in the third quarter were made using the JumiaPay app, a slight increase from 34.1% in the same quarter of last year, according to the statement.
The pan-African e-commerce platform has also expanded the range of digital and financial services available to consumers, and in Nigeria, customers can now book bus tickets through the JumiaPay app, while several new billers, including several universities, have been added to the platform in Egypt, allowing students to pay their tuition fees online through the JumiaPay app, the statement said.
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âIn the future, we intend to transform the JumiaPay payment account into a full-fledged wallet with an extended range of [functions], including cash-out, cash-out … and more â, Jumia Co-CEO Jeremy Hodara said on the call about the feature, which currently allows consumers to link a variety of payment methods, including any company card, account or wallet.
On the merchant side, the JumiaPay payment solution is being rolled out to third-party financial institutions (FIs), helping sellers access credit by leveraging their business data on the platform, the statement said. This quarter, 489 loans were made to small and medium-sized enterprises (SMEs), more than double the number in the same quarter last year and benefiting 354 unique sellers.
Read also: Jumia meets new e-commerce rivals in Africa amid pandemic
Additionally, the online marketplace has partnered with Solar Taxi, a Ghana-based mobility company, to provide an affordable and environmentally friendly delivery solution to its customers in the country, the statement said. The company said the partnership was part of its efforts to promote sustainable energy use.
See also: How ‘the Amazon of Africa’ navigates a pandemic-induced explosion in digital payments
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