Jumia Technologies (JMIA) 16 Nov 212021 Q3 Earnings call transcript

To accelerate the development of products and features for an even more engaging and seamless user experience, as well as of course, the development of JumiaPay.

We are comfortable with the increased level of loss given the strength of first unit economics that will come in a minute. The good signs of growth than we have just seen. And of course, our cash position of $584 million at the end of the quarter.

Now, let's review on Page 6, the unit economics, which obviously are a key enabler for these growth investments. can $XX. the you now order page, at stands this see average that value On

continue X.X%. shift our older. of we are older, product numbers fulfillment As which to same excluding X given categories. the more expenses, $X.X of at were An years everyday from of represents revenues, ago, entire $X.X incentives, X.X% each land, consumer gross stands after our profit and which mix per towards value the

the X of includes to unit into we this this that ones consumer is give -- our ago. standing increased unit strength Given hand $X.X. and to us We per the this order very this who me the more let for we [Indiscernible] continue consumer investing that more will over platform. and adoption. on $X.X And to economics. which at scaling similar to have now order, will targeted economies, to advertising invest strong are Jeremy, we into that see scaling us given are in have we which the the chart incentives now believe With this, level And We -- platform can investments details years had sales allow a

Hello, with page Sacha. X. and the you, strength everyone, today. the up joining on quarter Thank review thanks user We keep for bring of the

[Indiscernible] adds strong your quarters. million, year-over-year, active up fastest $X.X consumers X% quarter-over-quarter, We're to is up of pay fastest X X% a the supported XX% the surpassing is growth by past page sequential on million consumer rate weeks by quarter. acceleration a which is the annual growth the Year strength strategy our The off. X X, which quarters. seeing step the increasing So, starting an growth X also actually year-over-year, active and at access X, past of of all-time sequential consumers are reached prior the reached X.X in growth during high which and

reaching is acceleration manner, a Egypt now actually, were by continue we placing point result the XX.X% platform, rate explain we in year-over-year to that across strong terms and where continue of momentum in sold, past terms. volume last [Indiscernible] growth in I'm This starting Tech across more to doubled we day XX% GMV in are fastest-growing In the to a to review of reached we And number we page to As categories. growth business over QX pleased this momentum category, momentum We're we invest us quarterly with In confident fastest-growing to which GMV, all Jumia JumiaPay we orders of consumers. can the year. category our improving see on in categories, GMV parallel a to by Phone QX of XX, getting of of XX% X% growth in almost increased continue we maintain to JumiaPay the And growing keeping as FMCG bring this to transactions of Overall, stands XX. XX%, platform quarters. one and are on XX. was the turn strategy growth XX.X% see investments transactions second supported in every X see great X mix and million off average second in we're almost process million doubling momentum by moving acceleration. on increasing which factors factors product serve which orders. JumiaPay now as of our by page page the trajectory, also fastest on XX.X% penetration the with last XX X, volume grocery highest high the this the and this across categories accelerating XX% continued further the earlier JumiaPay year-over-year, affected QX its delivery online chain JumiaPay disruption. food compared higher Page merchants. ever increased detail completely particular. $XXX that every I'd focus in on and of continue GMV $XX category. can on as year, from in here. transactions our year-over-year, that's million. to will as JumiaPay value reaching If more transactions momentum The and like in to year app of orders an On disciplined we shift delivery, the in this QX last from we category of for take believe XX% platform particular. XX.X% year, our in $X exception now the JumiaPay. using On year the category new QX sold, this needs year-over-year. the sub the There's [Indiscernible] of in the category, have by be Electronics, in third-party to million We was digital which now to payments services, on in the month, inflection incredible growth, to a Food QX, different in the and trends disciplined only with We're returns, growth for JumiaPay, at you first And by from the Jumia platform. in It the initiatives that order went ever percentage $XX.X look in on broad-based degree [Indiscernible], in growth. opportunity QX consumer the reached general page accretion, platform GMV initiative was in million year posted supported towards off see GMV by If We this QX putting $XX. at beneficial almost year-over-year. year. delivery XXXX Jumia maintaining details. in category items growing terms supply with the which items and for was momentum which placed

in with our strategy to [Indiscernible] JumiaPay is explained ecosystem the and past, refer As for consumers merchants.

this The payments. first layer and essential ecosystem of is

card, can It payment we of Pay or and full-fledged extended wallet huge a consumers, In into sales turning have many for For account keys, methods linked their features There's range and checkout including a a payment made with JumiaPay bank with can diversities. JumiaPay variety cash embrace a checkout accounts we're that big account with method Jumia linked checkout of be credit intend Africa wallet. choice. in to of the to an more. to account accommodate these pleased and future, to into transactions we be

the JumiaPay merchants, invention’s are For solution checkout are that And an account base on payment solutions, rolling leverage overlaying initiatives. of both branded financial currently we of for the of On extensive we can merchant. holders. is out consumers did that and existing checkout an top we solution JumiaPay the solutions third-party to range

products further in already their expand intend offering. savings they'll stage Where current live third-party Jumia service micro-loan a have developments. And For diversify consumers, Pay products, of such [Indiscernible], we distributions select these app, providers, in of as countries to remain and are by live we the policies the offered the in insurance number etc. early

of almost developing with the QX of Today, with a [Indiscernible] increase access of is also Jumia XXX In be party and versus Jumia doubling we're data purposes. products. merchants, where More benefiting there or year-over-year. pain helping credit them to a financial XX% leveraging [Indiscernible] financial credit we [Indiscernible] For last Whether range sellers, platform, sellers will credit disbursed. sellers. dividends a internet than year and and XXX services, third point on to Access collect unique over institutions starting for and [Indiscernible] merchants. loans meaningful the inclusion

services. payments developing to an extensive for services of In range addition digital consumers merchants. We're financial and and

[Indiscernible] on For offering extending available, range give consumers, XXX services and constantly your broad a more JumiaPay than your [Indiscernible] from we're ranging to now already sense, app bus To we it. are you university booking the tickets. have paying we of a

attract and access also to And For promotions take is transactions, customer allow part of to them merchants, JumiaPay Balance we off offer specific Sheet, marketing to cohorts. have user-friendly features tools core to our we to legacy and settlements. strategy.

We And and payment have development ahead. are the coming building relevant we and a blocks to about what's recent very in excited the all Africa. JumiaPay into fintech grow …

walk to is I for you through Safae today Now, hand performance will and financial our [Indiscernible] over Alton (ph) covering who

Jeremy. Thanks metric. with monetization our start I will

market-based ad Marketing page at on XX% revenue solutions. robust center look advertising revenue trends by the increased of and Let's by take-up of our our supported XX.

the of Value was services by QX monthly advertisers budget failure of year. We compared year-over-year. compared are XX% consumer have monthly was the doubled agencies, sellers, our ad tighter warehousing impacted by added increased shipping half the to and Permissions in volumes as result as partly our 'XX the increased This average hence, sellers particular. both increased in of of in campaigns fulfillment well from caps and This of offset generally partly revenue number first collected instances. higher services. contributions platform, by X and a revenue by

impacts, back commissions we revenue as [Indiscernible] XX% to revenue to shipping and these down growth, customers. reduce usage was Excluding the up was X% by chose driven

monetization on gives streams. diversity monetization features is to serve Jumia and an logistics now to margin insensitive of model the also this assets, our strategy update our would Jumia platform Parts is logistics key One the the the JumiaPay. give us revenue you and flexibility of of monetization revenue I to from adjust like the our on XX. of to our Page strategies. And drive

these behalf new seeing was million-dollar over we generated volume This reaching We shipped, a business in a with revenue on of from XXX the record and clients. by QX of this X.X strong momentum packages million activities more milestone doubling are quarter-on-quarter mark. than driven 'XX, in reached

clients of In distributor the capacity the with a their have out third-party logistics Our of a Platinum, during Cameroon, we Tunisia, to the range sectors worked their we Galana examples sole sales Company worked In Kenya, Oil, worked and [Indiscernible] greater logistics modern collaborated distributor expand the a page their leading country. with In across as on we very trade clients we and serve area. broad (ph) Ivory country. clients retailers the the KDog's span with to across few leading with and client outlets wholesale serve quarter. who Suneet's we marketing across a laid service oil serve and Coast, for a

with have very relevant very to sectors. many very form relevant we this and large across are believe plat pleased milestone. companies unique We and small logistic -- We momentum created a

We lead our XXX-basis profit page year-over-year percentage onto these impact in QX, before past increase We over QX steady 'XX. a would points Moving QX in the 'XX. incentives QX shows which to to QX that X step-up reinvest made to GMV in to in the were the x the trajectory out incentives very by into $X down margin gains on for profit QX QX 'XX consumer in monetization increased our increase decision XX% XX. some 'XX in 'XX. this consumer million gross made in modest and 'XX, XX% of price the 'XX. million here accelerating levels competitiveness, Gross XX% of were XX% the from to years, 'XX $X.X of I point QX were compared

higher incentives, a XX% $XX.X margin than points 'XX. profit, to QX QX decreased million from $XX.X in of of consumer XX% 'XX. net in is gross of 'XX 'XX, in Similarly, which XXX the level in As million to above X% profits by 'XX remaining XX% QX from QX, result, basis which 'XX, QX QX, GMV at gross percentage is decreased

XX, phase on and costs, a page are of in increase onto investments. Moving we expansion

continued dividends, a We strong on and are we unit efficiencies that basis. can maintaining volume generating see logistics cost you

expense same X% 'XX, by the XXXX, than QX speaks segment QX full 'XX lower in step-ups XX% period. logistics And ordered in in to our in 'XX the or orders by accelerated while year-over-year, For payment XX% than was higher our significant increased efficiency. through over QX while which in XX% expense

in X marketing and increase offline at a slight the XX. you like compared XX% on a expense. of and would QX advertising see marketing better increase staff alligated of a above-the-line can on up million nature with give marketing because adjustments page tailored largely of journey to with And up 'XX marketing for in marketing based deployed the 'XX, marketing campaigns. split the implemented of tool launched are our brand-building XXXX.We're of on that's our incentive geographies. the And on 'XX, and was across marketing XX. year-over-year, costs, marketing share with of out-of-home page marketing months channel to the newly expense largely incentives and you in QX -- bit and which costs. in throughout channels royalties. reached final. and across with powered back reduction AI in June acquisition consumer the advertising and 'XX with were and maintained i.e., level $XX signals. awareness illustrations radio, reduced up investments cohorts as QX pace investments history investments. of I remaining is beginning with QX this performance The CRM more 'XX XXXX XX% across expense XXX% investments and with very We largely target allows dedicated now use XX in This investments picked in-line few limited full color QX advertising purchase and ramping sales our that from in support advertising, similar XXXX. in sales onto sales online shipping Moving consider now QX customer The the and We key media growth albeit up QX was we their price a XX TV, 'XX of tool 'XX. to to consumer In hit specific video advertising which The XX% allocated user to activities and will the consumer to investments

awareness penetrated. at the which geographical investments. continues share in line largest at to account online aimed are Below strategic areas, and under campaigns out-of-home of still marketing our are the for performance our Our increasing marketing reach

investments, our for example, Facebook funnel optimize reach funnel, Africa drive consists closely have This increase are we In we going these data of As very marketing direct to awareness user of into new to investments investments. in and to To channels, seek efficiency our online broaden a our acquire, bottom campaign or efficiency to audience with On increase network science the the we beyond teams platform constantly and alone, marketing, ads adoption. content counted the installs, fully September including allows approach. the brand automated moved response and of our of enhance full our we recall out us active building that In In rolled social KOLs media, leading network KPIs, we in brand of KOLs a KOLs compensate Facebook across XXXX, XXX Africa. campaign a awareness over uplift, proprietary views. key are to management leaders structure a manage, in manner. KOLs. working ad app and opinion

up technology build increasing expenses Turning XX% enhance platform. up and investments year-over-year, are is this and expense management to million, compared on due in QX an costs, The QX stock costs, to to 'XX to bench year-over-year. as as levels XX% the uptick the in lower this compared areas reached we the SBC in This excluding discipline business General features 'XX. content of increased with and Page XX. Technology engagement backbone of expense, Tech $X.X growth. of to G&A platform, and G&A user SBC, support products technology $XX.X excluding XX% cost QX and area we strengthened million area in and administrative XX% paying our area. remained on been mostly is investments our experience reaching we've in in to the 'XX, selective and another was to more

compared as growth have sales acceleration, adjusted QX clear development investments and and objectives result Moving of of in loss investments. Page in our capital of allocation $XX.X loss to and incentives, million million that. QX form and XX, JumiaPay reached increased a technology the EBITDA in EBITDA adjusted growth, to on advertising, consumer reflects $XX 'XX, we 'XX usage,

to sheets turn and flow XX. cash Page now items balance Let's

of $X.X utilization for in in We quarter, in activity, mainly investments supported payables QX by as At increasing asset-light that, to inflow was an operationally receivable party uptake activities, Cash used cash over investing defined an financial $X.X capital growth September our in shorter working I'll operating $XXX a recorded the 'XX concluding million with QX 'XX CapEx in specific end as a position of as excluding was in remarks. million platform the the This we had QX of an increase quarter. assets, investments the million of was are well in in the as requirements. With limited of for $XXX Sacha cycle. relating liquidity model. cash and result leveraging to of our working financial we assets. as million in cash inflow resulted $XXX capital a energies manner, million and of CapEx in change comprised benefits $XX.X 'XX. operating of and first very Net million the 'XX hand equivalents during

guys. very you, Thank much Jeremy. you Thank you Thank Safae.

the you of see we remarks, sales monetization efficiency using years. gains mean strong picks the faster the of economy can this course developing the possibility. the by our scaling think beginning to diversifying, And scaling that I we X of platform troll, And unit drive and have fundamentals platform. over leveraging, and past or JumiaPay, we're the again, achieved accelerating strong the

results, growth, year-over-year. with on global record that. for growing, I got pleased got GMV XX% think We've number closely consumers, so got active we're our we've plus we we've record --

growth volume. that. Egypt, Also, in On of and meaningful efforts X be on we of I X% marks. we million those we the volume, with reached developing think to monetization’s, Jumia see the JumiaPay, diversifying good salaries starting very on platforms logistics transactions see first for or the so XX% growth, value pleased are of

signs, during of work JumiaPay I diversifying views the more would have underway strategy of well with is to monetization. and quarter the we as acceleration good the the say think put I capital age and

and consumers pulls vast, And we untapped the this fronts. that destination this e-commerce payment for both really establish to the We Jumia as on compass want markets who go-to have

of continents [Indiscernible] infection next and to technology adoption investments and X of develop stepping we driving quarters. to Building to orders this continue consumer GMV repayment growth up consumers, accelerating upon further accelerate course, will and continue, JumiaPay streams acceleration, momentum, growth through as in and fluctuation make that to investments, unit champions when the up and very intend the the some scale ramp we will confident pace see further we will our want our and the the in growth growth term development, want we using ultimately and but we the economics on over JumiaPay We're into this of fuel we diversification usage, monetization that near achieving expect support utilization them. may

a attention take maintaining to breakeven allocation. ready and do Thank to and we to the cost and very of your your course, now are disciplined much business to take this, questions. for approach we capital you

up is we speakerphone quality. hold Please your floor The questions. please you your [Operator if ask while provide open Certainly. listening handset moment sound We a poll posing optimum questions. pick now for for that Instructions]. question, on to while

Your pose please Aaron Kessler is James, first with your from Raymond coming question question.

couple Thanks of A guys. questions.

economics will with for do you increased long little are the with marketing get of Thank the a can short-lived bit or the up quarters the of of this that maybe some then about customers. this, you. that customers profitability. more getting? talk this quality until the increased just data you several drive you level to overall was analyze after you I marketing, And these level concerned spent, on of First how of sustain you do expect do us maybe are think always incentives plan to unit you some on, can

investing consideration. top funnel marketing, education. terms impact strategy definitely the right? and on with conversion. at investing the in We're very of spectrum to investing We're full the here, into journey, consumer of awareness, investing into the And We're I investing brand across loyalty. the We're think of we're

part transact really to repeat and sometimes not online discover but number much the consumer incentives review to yet of so across the who done value. we'll JumiaPay. the And are XX consumer or the of we time, to share and are we're we customers our category you large help discounts that. is are So be to invest, over in based and consumer incentive with example, that not know have across of we drive to agree certainly, because TOB or the lifetime lifetime on of for we And good them investing is may as think very as mind. all overcome for that others; as spectrum. the help value part I right spectrum consumer dollars consumer behaviors. past, optimize We And very And new And and we consumer as to incentives top on always loyal good full optimizing to total inflect driving a drive have incentives, we have a start way as in certain the incentive and and in are consumers consumers are we value marketing ultimate over that conversion be think, for consumer I And who are lifetime strategic there practical. consumers the certainly, quantity of customers we deal to will JumiaPay seekers get with see very invest customers to the reasonable. the consumer a goal example, as necessarily who

certainly invest continue and -- to of level, want to we the in to terms Now and to invest continue more. to

marketing absolute we the will brand that that on question Obviously, investments want those if long-term efficiency what team, we And in is we sense. makes Certainly, those increased see as market continuing are want are dollars time. consideration. very marketing said, comfortable efficiency was to be based that be investing time. the to improve over think improved investments? efficiency the can awareness would what we see we to lot how about of And increase I of I for the see a the we fast marketing

will we the how can not are Again, may over X those what allocate that an say and it that increase that the dollars So, the the have on is want over that I more to solving exactly efficiency I evolving. for equation based increasing. evolves, we to absolute we do want case suiting. it's time to and we other dollars, want So, but time the see to time, to efficiency over And be navigate invest we'll quarter also or here we efficiency may we think as right? the

A quick follow-up.

incentives, can say the revenues you goods then as For then sales contra just is a quarter. in recognizing decline that in but third-party we you're increase where made And that looks in intentional IT first-party marketing? shift fast-moving and like revenues, the an saw [Indiscernible], there revenues, soon as [Indiscernible] more

Yes, revenues minus so mainly shipping. are of they as And in buckets minus accounted of the a for of buckets and in commissions. the

are is And where a that. accounted as in for that's So we're presenting this minus here of presentation. why they this

the can incentives If from last Aaron? before. within And year be before you what that after the so and Sorry. comparisons aggregate and your the year consumer second made quarters was question,

and you would revenues was that then that add if that, grown to have so third-party think you I aggregate? related

are the Yes. commission they consumer and part Because to be efforts see conditions we consumer on consumer why XX%, consumer by drive the that So, you the incentives. XX% that's Exactly. of after stage without incentive, we consider declining before after those can are our right? presented as growing by adoption. to this And education,

both that's why charts. we present And so

you. Thank Great. Okay.

Of course.

coming is pose Williams from question Your next your at question. Stifel, please Lamont

for Hi, question. my taking thanks

the thinking in to skew? something how a and within category. grocery little term you it Is to this marketplace more just a skews do, in Is or in you you category. talked the about long in more are one XP get about need the You to doing more key bit category, letter questions the will will back the shift more

good a It's question.

for then groceries, and distributors And markets, don't not to suppliers this, don't operate do that not operate geared we dropship that They on they don't sell they the also we've XP the d this to, and they FMCG operate in to are business, the and who doing capability they XP especially the want we're have operated consumers. big brands to distributing because use to right? our complexity -- recognizing business for business the the are And knowledge think DXC I the to business. is the always they're biggest marketplace players What paying because big a of really the recognizing right? right? that,

advantage part have We say operate last that a on to now of the deciding that's systems, great the we XP. because and always, are are accelerate distributors to to operate even able that and models faster, know operating us, see We're the that's how as And for the XP. to. standard plans to used capabilities, a new we we would processes, that's strength, And great and -- it. procedures the big XP a the big something great want do gloss as I we the right a we to adapting that do and

type marketplace the we'll, end or know not. if this future to Maybe correspond a see. to of would make neutral maybe parts basis. no. At will the on that margin revenue the day, more the marketplace on we would So, a the gross it's we take think I because of We'll in not that the really generally and commission XP we move don't we in the problem. basis a make correspond that into or or that we'll would less

So, I for category. us the makes prepared think, that financially, to is that of really this something and growth drive the do to we're sense

are to And question. maybe you're a about moved you you Could of little how up, about holidays the has With seeing you promotional just can? a a coming the like separate looks trends and Okay. some earlier. -- environment gotten has thinking talk it if holidays post-quarter,

something example, doing us, of size question, of a a get offering for consumers first pay the the driving in I JumiaPay with free on way. the but not again, for to example promotions baskets and part items. incentives for like the certain Lamont [Indiscernible] the shipping we I'm Well, discount Again that sure are or is strategic on grocery really of for

and the really using the payment the towards of categories that to drive that want that's intention consumers we're And really usage start lifetime the product we're intention good that. intention continue for methods recent value the then than everything intention, the and the type is certainly of the certainly that's objective sense. rate in in quarters And right? we're hope into acceleration, into and we I adoption us Again, accelerate scale So, part incentives the is and seeing faster to integrated the pleased to seeing platform our course see It's completing very so the our we to that's our to to grow those we then And and of growth and think of but with CLB this. that that, strategy. consumer numbers, certainly and strategically. And come. do the that to towards consumer here something but makes QX want don't of we plan we're

Okay. Thank you.

is next Capital. with from Your Korn (ph) question coming pose Mastercard question. Joshua Please, your

My to and so Hi, the acceleration much you thank quarter inflection on everybody is growth. X-fold. question and to congrats the

the First of to of give us of the quarter all, of kind relative on maybe beginning you the the quarter. how can end color trended some

we rate for GMV through would that the kind can further on or growth growth to really towards started QX QX, in of of can give sign QX kind in knowing you of QX, be what for expect helpful. end the some for of kind expectation sales rate exit roughly us acceleration Thanks. terms marketing of pick color So, continues the you any up that to and and that the

just course, asking for question. thanks of the And

diversification I the at that are further. going go said, intention And of that accelerate end phase even and And stop of is day scaling I will the we're we to monetization. we which to this engaging the I what not the think accelerating which platform, to where confident are is is we're very about just it's where [Indiscernible]. will happen. maybe just JumiaPay now. back And

were And that as continue Awesome. Is fourth up the we the rate and move now? into growth the quarter acceleration left now we acceleration seeing third increasing you pick quarter? as to

we're But out, some because will is about think September year-on-year can it's very think so something confident so there we to effect and QX again, playing forth. I and Well, not be the see that how accelerating disclose on, and I have we'll but August acceleration. always

we we your I market and you relative of mean, how landscape. bit question, how then what's entry is have Africa, could more really that barrier the entry do understand be it Africa Jumia, e-commerce and anybody kind in just leading How in dive it and landscape really seems a dominant love to position an kind all position. to in Africa into I else further is like can to maybe that of that kind hear to barrier your it a in stands of and competitive one

Josh, and question, Yes, thanks question. best the for

the users where never providing be to market e-commerce create the those is going number start of it and transacted that for takes extremely of the think brands create the first-time of and that take about yield a a to trust in online, that the something amount localization. scale time, be think is you for equity if needed takes the money, lot how, markets. There's almost of to successful at what need be never transact to brand what, to with consumers to to online hard in experience or entry bit a it a Africa. able that to lot to efforts, and And I a operate what components have barrier replicate, does back stepping lot lot a to you not to behind to customer the of great of and in are So, right? therefore which on

still some and downloads effort sometimes a drive. Jumia little to years big you everywhere. of something add think of that on strength Jumia is the the at one of I the takes app as the biggest see the that And rankings is than looking and very always brand investors, operating

at that of to write To of be brands be I to to PK investments be great a to deal consumers think take marketplace right work with time, the great do keys, supply, bring the to able sellers, and products able scale. able local obviously to right? international brands, international platform, write sellers, local to deal takes brands, to and to one be able giving a

very they're brand around are biggest what relevant local of with from competing. of very distributors we those and international terms the they're all small they is Africa, terms and in sellers, have sales also in the the together course, price the Jumia they sellers XXX bring a of program XP very for and and the sellers, this who and biggest also, end because small the are we and the and at the have border international in from relevance the big non-branded, sellers assortment sellers marketplace work local to and relevant day because choice and to relevant agile. are and We of the have ability consumers. thousand the the but sell the for brands And is And across

of aspect the So, supply. second this is

to The even is Jumia that the packages all the which last fast platform is third easy asset. have logistics, huge case that logistic which of in not Food. and over is created of country. as a the X one XX years, the And the ship Africa across we or as create And areas is a that can something hour minutes obviously obvious

I other services, logistics. down. are fulfillment choosing of payment, players more You just thing sellers But $X planning well. a least. million of going efficiency it now expense; do Coffee maybe third-party That's crossed choosing And It's over a we not not the efficient were course, right? a logistic last nice can but system our think from of to testimony they is revenue have merchants to They and come and I great lot to as Jumia keep new see use it's it and we on worked this I players time, pretty countries And scale being obviously energy, done, of it necessarily takes something JumiaPay position. reproduce we for a have operate think a is I passion, is lot cash-orientated good complementing And in skills, cash us think we create. lot so able of in puts to very multiple that delivery difficult what a that's and and do very savvy with are who in to to doing cash-oriented because that at with are countries, not that. economy still think money and in

and guess, GMV right? accelerating something I agree would is is can I they momentum confident with that though, into we're here. continue XXXX, the And growth

Right.

time. hear. Okay. the you for much Thank Great to taking so

course. Of

Sara your if comments do pose h hold poll any we remaining question. for one while moment any [Operator from again, X Please or additional questions. questions have there Once with Please are Berenberg. We additional Instructions]. question

that. Yes. product quarters just Hi, recall ago I'd pressed thanks to what a questions. X already taking thought I into I Could my orders? you you that scale [Indiscernible] us the seem for And digital remind button. couple got Anyway, of actually. on I of

bit So with morning grocery about then thorough, will which to well. all and stuff, can a is have and talk in [Indiscernible] earlier changed you you on incurring was I doing what's to that just the obviously establishing and costs upfront terms what of XP, significant another call Company I shift a XP this do stores as grocery assume

we you how thanks. shift can think about grocery just to talk into about XP lawful the So costs, should factoring

payments and to Thanks Sarah. happening into JumiaPay, is that is number everything so They’re and financial called of which process apps, users financial services a digital on so questions. use and goes forth. digital and the good much What orders pretty is that on, services access

few as X perspective those think micro away to the start orders. the digital we recorded was clear pretty moving from I took from a that quarters that services almost from those it's digital And transactions orders. ago, actions a little So, that bit are of are that

consumers buying the classic things. we airtime, which is strategy micro-transactions, to services the and with is a airtime that other time, for for look into on consumer cash and amount. will that over the making a back that those consumer And very small we discount a with X then some targeting sure what So app uses example, for with is example, for and of or a the mean attract, consumers recharge a a those classic by that

example, -- fine a parking or have can pay pay countries, and I consumers, less would example, services, say attract traditional today. for services. for and reproduce you if bus we attract to should can forth, the their and to less so we in different have back lot is have a university need the for can movie have we can hundreds app, So, say, I Consumers services buy as So, right? days fine, your if you -- do more tickets, can micro-transaction we some fine them those to than pay at so they a example, app with I can way, in -- literally have tickets, the think on pay on we Today the theater of fees, you you they would had a microtransaction. look they

that microtransaction, are unattractive. and that, the drive, It's nothing but to best I other who JumiaPay -- also attractive all something them consumers users are less think lot clear. they're we changed which we those So did to against that's good be we do and even we a So, that want a what to to the They right? transactions, less not of more And changed. do, have that's they I airtime, doing, as services. of result, drag very recharge added services their those of are we able are use

much to to focused to thing logistics; for us, inventory I food moving need we you lot rent back, have think Since thing example, Jumia, start that. our with the X. the you one we and And warehouse warehouse, forever have first of which the delivery is when capabilities to to logistics, store, because need is an warehouse see that. a sense grocery pretty think which interesting that did a small be in we we to something need was you warehouse. The that operate small been the to to since doing is mentioned the capabilities players new a that taking stores we day when do to to and and have you're means dark able operate logistics referring into you about for store storage, that, management, that and dark

and Jumia for so doing Express so on. that And

the us, of dozens nothing else have we Store warehouse, Dark for and already So, small warehouses. is than a

Maybe not done some of have So, see investments probably something it's what the that's will we going we extension have we they of for those to And warehouses, our some urban maybe before. quick the financial go that, the pretty into we're there be something and have. will we do. impact And dedicated part type. big stop some may that not course, and G&A there And, delivery, and foresee investments inside warehouses an already already that in those but have all it's work will stores there. that do maybe They we warehouses; areas. grocery, you dark we'll already much operating of us, here be

what So, do. for we much us it's of continuity a very

helpful. That's Okay. Thanks.

turn the to further like queue at over appear back time. floor I'd this questions remarks. no to any There be for in Sacha closing to

very much call end available that remain repeat we for and the always, the time you attending Thank discuss and enhance. to exchange at I of and as Great. every

staying reach to Take always fixing. hesitate not safe. care, hope Bye-bye. is everyone out do I you. we're and So and Thank

Thank you, does ladies and today's call. gentlemen, conference conclude this

for at disconnect wonderful participation. may and you lines Thank phone your this You your day. time a have