Online retailer Jumia Technologies has announced the shutting down of its portfolio in Tanzania.
The company announced this decision weeks after shutting its office and operations in Cameroon.
Widely regarded as “the Amazon of Africa,” the company said in a statement on Thursday that “As part of our ongoing portfolio optimisation effort, Jumia has come to the difficult decision to cease our operations in Tanzania effective on November 27.”
Jumia this year listed 17.6% of its shares at $14.50 a share on the New York Exchange with hopes of raking in more investments to expand.
The company was expected to have access to a larger pool of investors and global visibility.
Officials of Jumia were also hoping to raise $196m for shareholders and for future investment.
But Jumia is yet to be profitable with analysts saying it has accumulated losses of almost $1bn since it started operating.
Its African identity has also been questioned by many analysts including start-up experts in Africa.
Jumia has until now operational footprint in over a dozen countries. It is popular in Nigeria, Kenya, Ghana, Algeria, Angola, and Senegal.
The company although operates in Africa exclusively has it’s platform setup based in Portugal.
On its digital platform, Jumia sells anything from electronics to clothes. It also has hotel and flight booking sites as well as food delivery platform.
Jumia has four million active consumers on its digital platform as at 2018. But it was founded by two French entrepreneurs in 2012.
Source: Africafeeds.com
