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We intend to benefit from the expected growth of e-commerce in Africa through the investments that we have made and
the extensive local expertise that we have developed since our founding in 2012. Through our operations, we have developed a
deep understanding of the economic, technical, geographic and cultural complexities that are unique to Africa, and which vary
from country to country. We believe that our deep understanding has enabled us to create solutions that address the needs and
preferences of our sellers and consumers in the most comprehensive and efficient way. We possess extensive local knowledge of
the logistics and payment landscapes in the markets in which we operate, which we consider to be a key component of the
success of our company. In addition, we take full advantage of the mobile-centric aspects of the African market, having adopted a
“mobile-first” approach in our product development and marketing efforts, which allows us to expand the audience for our goods
and services, increase engagement and conversion and reduce our consumer acquisition costs.
On our marketplace, a large and diverse group of sellers offer goods across a wide range of categories, such as fashion
and apparel, beauty and personal care, home and living, fast moving consumer goods, smartphones and other electronics. We also
provide consumers with easy access to a range of on-demand services via our Jumia Food platform, including delivery, from
restaurants, grocery shops and convenience outlets. On our JumiaPay app, we offer a number of digital lifestyle services
including utility bills payment, airtime recharge, gaming and entertainment, transport ticketing as well as financial services such
as micro-loans or savings products. We had 6.8 million Annual Active Consumers as of December 31, 2020. We believe that the
number and quality of sellers on our marketplace, and the breadth of their respective offerings, attract more consumers to our
platform, increasing traffic and orders, which in turn attracts even more sellers to Jumia, creating powerful network effects. Our
marketplace operates with limited inventory risk, as the goods sold via our marketplace are predominantly sold by third-party
sellers, meaning the cost and risk of inventory remains with the seller. In 2020, more than 90% of the items sold on our
marketplace were offered by third-party sellers. To a limited extent, we sell items directly in order to enhance consumer
experience in key categories and regions.
Our logistics service, Jumia Logistics, facilitates the delivery of goods in a convenient and reliable way. It consists of a
large network of leased warehouses, pick up stations for consumers and drop-off locations for sellers and a significant number of
local third-party logistics service providers, whom we integrate and manage through our proprietary technology, data and
processes. In certain cities, where we believe it is beneficial to enhance our logistics service, we also operate our own last-mile
fleet.
Traditionally, consumers across Africa rely on cash to transact. We have designed our payment service, JumiaPay, to
facilitate cashless online transactions between participants on our platform, with the intention of integrating additional financial
services in the future. JumiaPay encompasses a number of functionalities. JumiaPay, with its network of licensed payment
service providers and other partners, provides digital payment processing on our platform allowing for a fast and secure payment
experience at checkout. JumiaPay has also a dedicated payment app, the JumiaPay app, through which we offer consumers a
number of digital lifestyle services from a broad range of third party service providers. Lastly, through Jumia Lending, our sellers
can access financing solutions provided by third-party financial institutions, leveraging data from the sellers’ transactional
activity on our platform for credit scoring purposes. We intend to continue expanding the range of payment and financial services
offered to both consumers and sellers as part of the Jumia ecosystem. As of December 31, 2020, one or more JumiaPay services
were available in eight markets: Nigeria, Egypt, Morocco, Ivory Coast, Ghana, Kenya, Tunisia and Uganda. JumiaPay
Transactions and Total Payment Volume (“TPV”) have both increased substantially since its launch. The number of JumiaPay
Transactions reached 9.6 million in 2020 compared to 7.6 million in 2019. TPV reached €196.4 million in 2020, up 58%
compared to 2019.
Our operations benefit from centralized decision-making and a uniform technology platform coupled with coordinated
local presence. Our unified, scalable technology platform has been developed by our technology and data team, which is
predominantly located in Portugal. This technology platform covers all relevant aspects of our operations, from data
management, business intelligence, traffic optimization and consumer engagement to infrastructure, logistics and payments. We
constantly collect and analyze data to help us optimize our operations, make our consumer experience more personal and
relevant, and enable us, selected sellers and logistics partners to make informed real-time decisions. Our local teams in each of
our countries of operations have access to, and may benefit from, the centralized data collection and analytics and are empowered
to use the insights gained from our platform in order to take action locally.