After years of losses, African e-commerce giant Jumia claimed significant progress towards profitability in its Q4 2020. Backing that claim, Jumia reported record gross profit and some improvements to its cost structure.
The company wrote in its earnings release that while “2020 has been a challenging year operationally with COVID-19 related supply and logistics disruption,” it had also proven “transformative” for its business model.
Let’s examine its financial results to see how Jumia fared during the pandemic year and see if we can see the same path to profitability discussed in its written remarks.
Jumia’s core metrics were uneven in 2020. The company saw its user base grow by 12% in 2020, from 6.1 million customers in 2019 to 6.8 million customers. That…