Jumia Nigeria is still not profitable two years after its launch, but is instead focused on winning market share, according to former managing director (MD) Tunde Kehinde.
He admitted the e-commerce company is yet to turn a profit, but is instead still investing in order to gain a bigger market share.
“There is a plan to get profitable but a bigger plan is to win the market,” he said. “In a market as big as it is, as long as you have strong and patient funding behind you, I don’t think you’ve got to worry.”
Jumia is funded by Rocket Internet, and since its launch has built a team of over 1,000, including 85 dedicated customer service staff working seven days a week and a fleet of 100 delivery vehicles.
Though he said he could not give a timeframe on profitability given he is no longer involved in the company, Kehinde said he felt Jumia had played a role in popularising online shopping in Nigeria and Africa.
“I think we definitely increased the confidence in shopping online,” he said.