Jumia, the pan-African e-commerce platform, has reported a significant leap towards profitability in its second-quarter results for 2025, showcasing a 25% year-over-year revenue increase and a notable reduction in cash burn.

The company announced that revenues for the quarter ending June 30 reached $45.6 million, up from $36.5 million in the same period the previous year. This performance has led Jumia to raise its full-year guidance, reflecting growing confidence in its strategy.

Operating losses decreased by 18%, totaling $16.5 million, while the company’s cash burn was nearly cut in half, dropping to $12.4 million from $23.2 million in the previous quarter, indicating stronger control over expenses.

“Our second-quarter results demonstrate continued momentum in our core consumer business,” said CEO Francis Dufay. “This reinforces our confidence in achieving our strategic goal of breakeven on a Loss before Income Tax (LBIT) basis in the fourth quarter of 2026 and reaching full-year profitability in 2027.”

The growth was largely driven by strong performance in Jumia’s core physical goods business. After exiting operations in South Africa and Tunisia at the end of 2024 to focus its efforts, Jumia reported an 18% increase in orders for physical goods, and a 13% rise in the number of active customers year-over-year.

Gross Merchandise Value (GMV)—the total value of goods sold on the platform—rose by 6%, reaching $180.2 million. However, the company noted that growth was constrained by a reduction in lower-margin corporate sales in Egypt. Excluding this factor, GMV for physical goods increased by 24%.

Nigeria, one of Jumia’s key markets, saw particularly robust growth, with orders rising by 25% and GMV increasing by 36% year-over-year.

Jumia has also made strides in its first-party sales, in which it sells inventory directly to consumers. Revenue from this segment grew by 47%, reaching $23.6 million, bolstered by partnerships with international brands such as Starlink and Adidas. Through first-party sales, Jumia directly sources products from brands like Starlink and Adidas and sells them to customers, as opposed to allowing these brands to sell their products through third-party sellers on the platform.

A critical part of Jumia’s strategy has been a consistent focus on cost control. Sales and advertising expenses decreased by 6%, even with growing customer numbers, which the company attributes to a more targeted marketing approach.

General and administrative expenses were also reduced by 12% compared to the previous year. Jumia continues to streamline its operations, having reduced its workforce by 5% since the end of 2024, leaving the company with just over 2,050 employees. Additionally, Jumia is employing AI-driven workflows in customer service, marketing, and technology to enhance efficiency and reduce costs.

Following its strong quarterly results, Jumia has updated its full-year forecast.

The company now anticipates GMV growth between 15% and 20%, an improvement from the earlier estimate of 10% to 15%. Jumia also revised its loss forecast, now expecting a loss before income tax of between $45 million and $50 million for 2025, an improvement from the previous projection of $50 million to $55 million.

These results represent continued efforts by the company—once known as “the Amazon of Africa”—to demonstrate the long-term viability of its business model and achieve the profitability it has long sought.

Source

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