Jumia's Recovery Featured on Daily's News Platform

In a significant development, African e-commerce giant Jumia has reported impressive financial performance in Q2 2025. The company's revenue grew by 25% to $45.6 million, and the operating loss was reduced by 18% to $16.5 million. These figures mark a promising turnaround for the company, which has been struggling to turn a profit in recent years.

The growth in revenue was driven by robust consumer demand in Nigeria, where Jumia's Gross Merchandise Value (GMV) increased by 6% to $180.2 million. The company's active customer base also grew by 7% to 2.2 million, reflecting a successful expansion strategy. Notably, 59% of orders came from non-capital cities, a testament to Jumia's low-cost expansion efforts.

Jumia's Q2 results also showed deeper platform engagement despite the company's retreat from big markets and tightened spending. Order volumes grew by 18%, and the adjusted EBITDA loss narrowed by 17% to $13.6 million. Cash burn improved significantly, falling to $12.4 million from $23.2 million in Q1 2025.

The company's management has raised its outlook for 2025, reiterating targets of breakeven by late 2026 and full-year profitability by 2027. This optimistic forecast has sparked investor optimism, with Jumia's stock increasing over 23%.

Meanwhile, another tech company, Truecaller, is facing an investigation by the Information Regulator in South Africa. The investigation focuses on Truecaller's feature that pulls entire contact lists from users' phones, which could reportedly violate POPIA, a South African privacy law. If found in violation, Truecaller could face fines up to R10 million ($564,000), changes in data collection practices, or restrictions on processing South African data.

In a separate development, Kenya is considering a new alcohol control bill that could threaten the business models of various sectors, including e-commerce platforms, supermarkets, restaurants, and boda boda riders. The bill proposes bans on online alcohol sales, home deliveries, and promotions by influencers. If passed in its current form, the new rules could force hundreds of small liquor shops, bars, and restaurants to scale down or shut altogether.

Elsewhere in Africa, the heavy transaction processing by Point of Sale (PoS) operators in Nigeria could mean that the country might still be far from its cashless economy goals. PoS operators processed $7 billion in Q1 2025, a 4x increase from last year. However, this high volume of transactions could also indicate that Nigeria's cashless economy ambitions are within reach.

In conclusion, Jumia's Q2 results suggest that the company is on a more solid footing in its turnaround, with improving revenue, shrinking losses, better cash management, and positive momentum in key markets. Meanwhile, the investigation into Truecaller's data practices and the potential alcohol control bill in Kenya highlight the complex regulatory landscape that tech companies and businesses operating in Africa must navigate.

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