Jumia suffers 65% share price drop in six months

Joseph Olaoluwa

African e-commerce giant Jumia has seen its share price tumble by 65.88% since June when it traded at a peak of $13.10, data analysed by Markets Reporters show. 

Its share price closed at $4.47 on the New York Stock Exchange (NYSE) on Monday, with its market capitalisation falling to $547.41 million from as high as $1.32 billion in June. 

The downtrend reflects the ongoing challenges faced by the e-commerce player since its debut on the NYSE in 2019. Currency devaluation in key markets like Nigeria and Egypt has hampered growth.

It has taken several cost-cutting measures, including staff reductions and a scaled-back advertising budget.

While order volumes increased to 5.9 million in the third quarter of 2024, gross merchandise value declined to $162.9 million. Revenue also dipped 13% year-over-year to $36.4 million.

Jumia faces mounting competition from new entrants like Temu, the Chinese online retailer that recently topped download charts in Nigeria. Social commerce platforms like WhatsApp, TikTok, and Instagram are also gaining traction.

The company is attempting to differentiate itself through its JForce network and by expanding its logistics network.