EXCLUSIVE: Jumia's Co-CEO Talks African E-Commerce Platform's Growth Trajectory With 'PreMarket Prep'

Jumia Technologies AG JMIA has overcome payment and logistics challenges in Africa, putting the company in a very good position, co-founder and co-CEO of Jumia Sacha Poignonnec said Wednesday on Benzinga's YouTube show "PreMarket Prep."

The African market can be challenging to penetrate because the distribution of goods is more difficult than anywhere else in the world, Poignonnec said, adding that African infrastructure makes traditional retail growth difficult.

The company is focused on its core business in 11 countries on the continent representing around 70% of Africa's GDP and population, he said.

Jumia wants to build its e-commerce and food delivery services as well as its Jumia Pay product, the co-CEO said. 

The company's existing partners see Jumia as a strategic partner, he said, adding that the company is well-positioned for other partnerships with "big players."

Related Link: Exclusive: Why Citron Research's Andrew Left Says Jumia Could Be Buyout Target

The company wants to be in a position to spinoff Jumia Pay and Jumia Logistics when it becomes relevant enough to consider, he said. Although, he noted Jumia is "years away" from considering spinoffs of those assets. 

JMIA Earnings: The Berlin-headquartered company reported earnings on May 11.

First-quarter revenue was down 6% on the year to 27.4 million euros ($33.47 million), below the 35.1-million-euro consensus estimate. Jumia announced that annual active consumers increased 7% to 6.9 million and orders were up 3% to 6.6 million.

Poignonnec told Benzinga that he expects user and transaction growth to accelerate over the next few quarters.  

Jumia is focused on scaling and growing by building trust with its customers and improving selection, price and convenience, he said, adding that if the company is able to execute on those fronts, profitability will follow.

JMIA Price Action: Jumia traded as high as $69.89 and as low as $3.93 over a 52-week period. 

At last check Wednesday, the stock was down 1.49% at $27.18.