Jumia partners with Mirakl to boost marketplace advertising capabilities

LAGOS/PARIS - African e-commerce platform Jumia (NYSE:JMIA), currently valued at $521 million and experiencing a 20.2% year-over-year revenue decline, has partnered with Mirakl to enhance its advertising capabilities through the deployment of Mirakl Ads, according to a company press release. InvestingPro data shows the company maintains a strong cash position relative to its debt, though it faces profitability challenges.

The new retail media solution, designed for both first-party and third-party sellers, has been implemented across Jumia’s operations in nine African countries including Ghana, Nigeria, Kenya, and Egypt.

Jumia completed the integration in just two months, with the system now providing AI-powered optimization and automated campaign management tools for advertisers on its platform.

"Advertising is a key growth lever in our marketplace strategy, and this partnership with Mirakl allows us to accelerate that journey with speed and scale," said Francis Dufay, CEO of Jumia.

The move comes as retail media continues to expand within e-commerce, with the sector expected to reach $204 billion by 2027 at a compound annual growth rate of 17.2%.

Jumia aims to leverage the technology to deliver more personalized product recommendations to customers while providing sellers with enhanced advertising tools.

Adrien Nussenbaum, co-founder and co-CEO of Mirakl, noted that the partnership demonstrates "our platform’s ability to deliver immediate and measurable impact for leading marketplaces."

The collaboration is part of Jumia’s strategy to accelerate monetization and advance its path to profitability across its African markets, where the company currently connects approximately 70,000 sellers with customers. With annual revenue of $154.85 million and a concerning cash burn rate, this strategic move becomes crucial for the company’s future. For detailed analysis and comprehensive insights about Jumia’s financial outlook, including exclusive Fair Value estimates and growth projections, visit InvestingPro, where you’ll find an in-depth Pro Research Report covering all crucial aspects of the company’s performance.

In other recent news, Jumia Technologies AG has attracted takeover interest from Axian Telecom, as reported by Bloomberg. The Mauritius-based telecommunications company is considering acquiring Jumia as part of its strategy to expand its presence in Africa. Axian Telecom has reportedly raised $600 million, which could be used to refinance its debt and potentially fund the acquisition. Jumia, with a market value of approximately $500 million, could be delisted from the New York Stock Exchange if a deal is finalized. However, negotiations are ongoing, and there is no guarantee of a final agreement. This development highlights Jumia’s efforts to navigate the challenges of e-commerce in Africa, where logistics and payment infrastructure pose significant hurdles. The potential acquisition could create synergies between Jumia and Axian, enhancing their market presence across the continent.

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