Jumia looks really amazing. In short JumiaPay is unlocking new vistas for this company: “JumiaPay also recorded impressive numbers in the second quarter, with its TPV growing by 31% year over year to $74.2 million, and transactions reaching 3.4 million in the second quarter of 2022, growing by 25% year over year. The platform has yet to put its Payment Service Solution Provider (“PSSP”) license — granted by Nigeria’s apex bank, the Central Bank of Nigeria to process payments for third-party businesses — to use in Nigeria.
“Poignonnec [co-CEO Jumia] said it’s only a matter of time before the service is live in Nigeria. However, JumiaPay has begun a pilot in Egypt where the platform has a similar license.”
In two years, JumiaPay could join the tier-1 of leading fintechs in Africa. Jumia looks extremely impressive when you see how fintech companies are valued. Having JumiaPay will give this company new mojos in the future. I have made the point that Jumia must execute one oasis/double play strategy to have any chance since ecommerce alone cannot power its future. Today, that double play is JumiaPay and this company has a clear future.
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The One Oasis Strategy is about finding how to create solutions which can find their first customers within the business. Amazon Cloud has the ecommerce operation as its first customer thereby removing any market risk. Samsung Semiconductors has the Samsung mobile devices business as the first customer. With those assured internal customers, these firms deploy resources, irrespective of the market dynamics, because they have found the first customers already, in-house. But over time, the products are now made available to the general public. You need to identify your best product (the oasis) and get others to find how to build habitations around it.
Everyone is deepening the age of double play strategy; TikTok sees growth in the ecommerce operations: “TikTok’s gross merchandise volume (GMV) for its e-commerce business in the first half of 2022 exceeded $1 billion, which is equivalent to the full-year volume the platform saw in 2021, LatePost reported on August 10. Among them, the average monthly GMV in Indonesia reached $200 million while the average monthly GMV in the UK was $24 million. However, compared with its competitors, the scale of TikTok’s e-commerce is still limited.
“The GMV of Shopee, which belongs to Sea Ltd., exceeded $60 billion in 2021. Alibaba disclosed on its 2021 Investor Day that as of September 2021, its e-commerce platform Lazada’s GMV reached $21 billion. TikTok’s e-commerce achieved rapid growth in the first half of the year, which benefited from its expansion in Southeast Asia, in addition to its own small volume.”
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