Jumia's 3 Keys to Reaching Profitability
Jumia Technologies (NYSE: JMIA), often declared the "Amazon of Africa," is a pan-African e-commerce platform that serves as a marketplace connecting sellers to consumers. The company operates in three regions, which comprise 11 African countries that together represent more than 70% of Africa's total GDP. Jumia's total addressable market of 1.4 billion consumers – much larger than North America's population of 373 million – offers the company a lucrative opportunity.
Still, Jumia has struggled in recent years to achieve the growth that many investors were hoping for. The company still remains Africa's biggest e-commerce player, generating more than double the amount of monthly visits than the next largest company. With Africa's e-commerce market set to grow at a compound annual growth rate (CAGR) of 10.5% to $46.1 billion by 2025, Jumia is well-positioned to be the leading beneficiary. Let's discuss three keys to propelling Jumia toward profitability.
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Source Fool.com
