Jumia

Business
1

I am sure many villagers don’t know that Jumia is a Nigerian brand that expanded to other African countries including Kenya.

Anyway, Jumia’s parent company(Rocket Internet), recorded an EBITDA loss of USD 254.6 Million for the full year of 2016.

The company’s total revenue for 2016 rose by 29% to USD 2.4 Billion (EUR 2.2B) from USD 1.8 Billion (EUR1.7B) reported in the previous period.
Rocket Internet’s available cash and cash equivalents rose to USD 16 Billion, a full year increase of about USD 870.4 Million.

And this company was just formed in 2012 but it’s available cash and cash equivalents is more than the total assets of all Tier 1 banks in Kenya combined :eek::eek::eek:

2

Ecommerce is the future. These upcoming brick and mortar malls popping up everywhere are in for a rude shock

3

I was shocked to learn that Tesla never makes a profit but its share value keeps rising

4

The current share price is an estimation of the future earnings of the business. Tesla is essentially creating a new market segment that is why they are valued at such a high price.
This trend very popular among tech companies

  1. WhatsApp - bought for 19bn USD while they had generated a revenue of only $1,289,000
  2. Youtube has never made any profit in I don’t know how many years
  3. Snapchat valuation
  4. Uber has been a perpetual loss making entity

etc etc

5

Quite true.
Jeff Bezos(CEO and Founder of Amazon) is currently the 2nd richest person in the world behind Bill Gates. This is despite Amazon making losses year of year.

Alibaba has already become a form of life in China
This is why Walmart has been acquiring ecommerce businesses left right and center as a means of evolution

6

Even safaricom never declared any profits for ten years and so no dividends were paid. Everything was being ploughed back and that’s what makes it what it is today

7

Ongeza hapo Salesforce. They have never made a profit and owner is among the richest in the world

8

Many of these internet companies use tax havens while stating losses to avoid paying huge taxes

9

I think so too

10

Are you talking about Jumia or Rocket internet? Coz those are two different organizations. Rocket Internet is a German company which has invested in Jumia.

11

Amazon walianza ku make profits tho

12

how about OlX? how do they make money?

13

OLX make money by providing advertising space for large and small brands, same as Facebook etc , the free service for Person to Person is just to draw a large crowd, the future of advertising is digital marketing, newspapers Tv’s are becoming obsolete and are being forced to adopt to blogging e.g Nairobi news to gain more revenue

14

siku izi olx are charging these days for specialized marketing these days

15

Same as Amazon. They spend more on capital that will increase its future prospect and share value. That way, they insulate themselves from Wall Street warriors that want a quick buck, and at the same time attract investors with an eye for the long term. Your yield only arises from share growth.