Can Its Fintech Efforts Help Jumia Regain Some Valuation?

If Jumia Technologies (NYSE: JMIA) offers anything, it's potential. In the best-case scenario, the startup could become the African version of North America's Amazon.com (NASDAQ: AMZN) or Latin America's Mercadolibre (NASDAQ: MELI) -- two multi-billion-dollar e-commerce giants that have used similar business models to deliver massive returns to investors.

Right now though, around 11 months after Jumia's IPO, the company is still falling far short of its lofty ambitions.

At $2.60 per share, Jumia has shed around 82% of its initial $14.50 IPO price. And with only 234.4 million euros on its balance sheet, the company will have a hard time sustaining its significant cash burn. Losses totaled 63.9 million euros in the fourth quarter, so the company only has a few quarters of operations left at its current spending pace before it runs out of cash.

Source Fool.com