Qingyu Zhong

Qingyu Zhong asked about the drivers behind Jumia's solid active customer growth in Q3, seeking details on the demographic profile of new users and the sustainability of this growth pace. She also requested more information on Jumia's up-country expansion plans, including key milestones and their connection to the 2026 strategy. Finally, she inquired about Jumia's advertising monetization opportunities, noting the current low penetration and softer Q3 performance, and how the company plans to strategically shape this revenue stream for the mid-to-long term.

Answer

Francis Dufay, CEO, attributed the active customer growth to fundamental changes over three years, including better assortment, pricing, and reaching new markets through hundreds of new city expansions. He highlighted a refined marketing playbook catering to diverse customer segments and expressed confidence in the sustainability of these healthy, broad-based trends. Regarding up-country expansion, Mr. Dufay noted that orders outside capital cities now represent 60% of volume, with significant potential remaining as Jumia is 'just halfway through' covering the population, citing Nigeria's recent expansion into northern regions. On advertising, he acknowledged the low 1% GMV penetration and softer Q3 due to seasonality and brands rationalizing budgets. Mr. Dufay outlined a target of around 2% of GMV, driven by retail advertising for medium/smaller sellers and international vendors, better tools, strong execution, and overall business scale.

Qingyu Zhong asked about the drivers behind Jumia's solid active customer growth, seeking demographic profiles of new users and insights into the sustainability of this growth pace. She also requested more details on the up-country expansion plan, including key milestones and its connection to the 2026 strategy. Finally, she inquired about Jumia's advertising monetization opportunities, particularly given its low penetration and softer Q3 performance, and how the company plans to strategically shape this revenue stream for the mid-long term.

Answer

Francis Dufay, CEO of Jumia, attributed the strong active customer growth to fundamental changes over three years, including better assortment, price points, and expansion into hundreds of new cities, particularly in Nigeria. He noted the refinement of marketing playbooks for diverse customer groups (digital natives vs. offline) and believes these healthy, broad-based trends are sustainable. Regarding up-country expansion, Mr. Dufay stated that orders outside capital cities now represent 60% of total volume, but Jumia still covers a low fraction of the population. He highlighted ongoing expansion in Nigeria (e.g., Sokoto, Maiduguri) and plans for Kenya, Ghana, and Egypt, indicating the company is 'halfway through' its potential. On advertising, Mr. Dufay acknowledged the current low penetration (~1% of GMV) and softer Q3 due to seasonality and brand budget rationalization. He sees significant upside, targeting around 2% of GMV, driven by retail advertising for local and Chinese sellers, better tools, strong execution, and overall business scale.