The company which was founded in 2012 by two French former McKinsey consultants has grown quickly to become the continent’s leading e-commerce firm, operating in more than a dozen countries.
Its shares have tumbled from its Wall Street initial public offering price of $14.50 dollars in April, hitting a record low of $5.10 dollars on Monday after third-quarter results missed revenue estimates for the second time in three quarters.
“Based on our review, we came to the conclusion that our transaction portal as it is run today is not suitable to the current context in Cameroon,” the company said in a statement on Monday.
A source at the company in Cameroon said it had chosen to prioritise growth over profitability, which had not paid off.
“We wanted to see how business evolved. We can come back, but for now we’re closing (to have) time to study the market,” the source, who declined to be named, told Reuters.
Meanwhile, Jumia said it would continue supporting buyers and vendors in Cameroon using its classified portal, known as Jumia Deals.
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