Business & Tech

Jumia

Nigeria-Business
Nigeria’s Foremost Online Retailer
Nigerian-born Tunde Kehinde and Ghanian, Raphael Afaedor, both Harvard Business School graduates, are the creative minds behind Jumia, the number 1 online retailer in Nigeria

Background


Consumers typically travel to local markets, supermarkets and newly designed malls to shop for goods. In a busy metropolitan city like Lagos, the one big concern is traffic. It is very unlikely to consider a quick run to the market, moreover, there are few one-stop shops available to purchase more than one class of goods.

Jumia.com was founded in 2012 and is one of the biggest online retailers in West Africa currently serving in 6 countries; Morocco, Kenya, Ivory Coast, Egypt, South Africa and Nigeria.  Jumia sells a variety of products including clothing, electronics, furniture, books, baby products, cosmetics, home appliances and even alcohol, all at an affordable price and in one online medium. Jumia promises same day delivery within Lagos and a 5-day delivery period within the country of Nigeria.

Jumia.com offers a range of products that receives 150,000 daily unique visitors with a registered user base of 750,000. According to a German technology startup incubator, Rocket Internet, Jumia has become the 4th most trafficked website.




Jumia is unique in the Nigerian retail industry because it is one of the few merchants that provide easy returns if the customer is not satisfied.
 Most merchants in Nigeria offer only cash or card payments; however, Jumia offers a variety of payment methods:

  1. C.O.D (Cash on Delivery): This has been the strongest point for the company as many Nigerians are still not comfortable with online payments.
  2. Mobile Phone Payment: In August 2013, Jumia entered the ‘m-Commerce’ (mobile commerce) market by launching its Android App.  This put Jumia’s  50, 000 product catalogue in the hands of any Nigerian smart phone user.  Currently the Nigerian Communication commission shows that Nigeria has 48.2 million smart phone users and 120.4 million mobile subscribers (78% of the population). Payments for Jumia products can be made via cell phone as well.  Recent figures show that cell phone payments doubled to 2.4 million by the second half of 2012.

Investors

Kehinde and Afaedor liaised with investors that have backed the company with an impressive funding capital of about $75 million. They include:

  • AIT – Africa Internet Holdings
  • Rocket Internet
  • JP Morgan
  • Summit Partners

Progress Report & 234 Impact


World Recognition

In October 2013, Jumia was received “Best Retail Launch of the Year” award at the World Retail Congress in Paris, France.  Important to note it that Jumia is the 1st African company to win this award with past recipients include, Nike Town, Woolworths, and Zappos.

Job Creation

Jumia has over 600 employees in its sprawling 90,000 square foot facility in the bustling city of Ikeja, Lagos state. Kehinde has said that their growth lies in the human capital that they have and that he sees the company expanding and there is a huge potential for more growth within Nigeria at Jumia.

Similar to most tech companies in Silicon Valley, the average age of its staff is 24/25. Most were sourced from around the world, particularly Nigerians who wanted to come home, from institutions like Harvard Business school, MIT, Oxford and London Business school and locally, from GTB Bank, Samsung, Nokia and across the best universities in the country.

Technological Horizon

Jumia has positioned itself to be a leading online retailer in Nigeria similar to Amazon in the US. For a company that started with a staff of 10 and over a year grew to 600,

As Kehinde put it, “What once required a trek to the market now only requires the click of a mouse or …a smartphone app”.
with a funding base of $75 million, it is leapfrogging traditional retail in Nigeria. Adding to its brand, Jumia Global launched FTC Apparel in October 2013, its own in house clothing label catering to women’s fashion.

Currently, Jumia’s presence is in 6 states and the company intends to expand to all 36 states in Nigeria. Eager to expand its operations, the company is building its own fleet of 200 vehicles to meet the demand of its customers and it also utilize motorbikes to ensure on time delivery of its goods as these can wade through city traffic faster.

There is a huge potential for Jumia in Nigeria as Nigeria has seen a boom of technology start ups in the recent years and with the unique need of providing a variety of different goods in one medium at affordable prices right to your doorstep in the traffic jam packed city of Lagos and beyond, Jumia is here to stay.