People are seen outside Jumia Technologies headquarters in Douala, Cameroon, November 18, 2019. REUTERS/Josiane Kouagheu
JOHANNESBURG (Reuters) – Online retailer Jumia Technologies, often called “the Amazon of Africa”, said it had suspended its e-commerce platform activities in Cameroon on Monday because it was not suitable for the country.
Its shares have tumbled from its Wall Street initial public offering price of $14.50 in April, hitting a record low of $5.10 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 transactional portal as it is run today is not suitable to the current context in Cameroon,” the company said in a statement, adding that its e-commerce operations there had been suspended.
Founded in 2012 by two French former McKinsey consultants, Jumia has grown quickly to become Africa’s leading e-commerce firm, operating in more than a dozen countries across Africa.
With an e-commerce business similar to Amazon and a classified portal like Alibaba, it sells from its own stock and takes a cut of third-party transactions on its website.
Jumia said it would continue supporting buyers and vendors in Cameroon using its classified portal, known as Jumia Deals.
Reporting by Joe Bavier; Editing by Susan Fenton and Edmund Blair