EAST AFRICA – E-commerce platform Jumia has announced the appointment of Vinod Goel as Regional CEO of East Africa.
Vinod previously served as the CEO of Uganda but will now manage Jumia’s operations in the country and Kenya as the direct CEO.
Jumia Kenya said in a statement that it is entering a growth phase and needs leadership that can accelerate growth while generating a sustainable, profitable business. The company is confident that Vinod has the drive and skillset to achieve these ambitions.
“I’m deeply honored and excited to lead Jumia’s operations in Kenya and Uganda during this exciting growth phase. Our commitment to delivering an innovative, convenient, and affordable online shopping experience remains unwavering,” Vinod said.
‘’Additionally, we are dedicated to fostering more brand partnerships with local and global companies. We are witnessing huge interest from international brands, such as Starlink, to be their sole partner and new brands to launch their products overnight in the whole country.
“We will also support brands in launching and expanding in other Jumia markets to become truly pan-African brands, starting with Kenya and Uganda.”
Vinod started with Jumia in 2020 as Head of Global Fulfillment Operations, overseeing operations across all Jumia markets. In 2022, he became the Chief Executive Officer overseeing the expansion and deployment of Jumia Uganda.
Prior to Jumia, Vinod worked in Strategy, Finance, and Supply Chain with Lafarge Group, a French conglomerate based in Europe, Asia, and Africa. He also worked as a software engineer in India earlier in his professional career.
He takes over the mantle from Charles Ballard for Kenya business, who joined agritech firm Twiga Foods as CEO.
With a career spanning over fifteen years, Ballard brings a wealth of experience in e-commerce, retail, and financial services.
In his new role as CEO, he will oversee all aspects of Twiga’s business, supported by other senior leaders.
Jumia’s orders increased in Nigeria and Ghana
Despite a challenging macroeconomic environment in Africa, including currency devaluations in some of its largest markets, Jumia secured sufficient inventory and offered a diverse product assortment at competitive prices, keeping customers engaged on its platform.
Jumia CEO Francis Dufay stated that the company’s cash burn was US$19.1 million, down from US$22.0 million in Q1 2023, due to disciplined expense management and further streamlining of the logistics network. Cash burn refers to using Jumia’s liquidity position, which includes cash, cash equivalents, and other financial assets.
Among other things, Jumia stated that lower customer discounts helped attract a more loyal and high-quality customer base.
While the CEO stated that orders increased in some of its major markets, Jumia’s orders fell by 22% in 2023 due to high inflation and currency depreciation. The company’s orders fell by 22%, from 27.5 million in 2022 to 21.3 million in 2023.
Meanwhile, Dufay emphasized that the company is off to a strong start and reiterated its strategic priorities, focusing on establishing a leaner organization ready for growth.
In 2022, Jumia laid off 20% of its workforce, affecting about 900 people, and in 2023, it closed down Jumia Food in Nigeria.
In addition, JumiaPay transactions surpassed 2.0 million, a 52% increase driven by the rollout of JumiaPay on delivery in one of Jumia’s largest markets, the company stated.
Furthermore, Jumia intends to continue reducing its losses despite a 71% decline. It said it is still committed to reducing losses and accelerating its progress towards cash efficiency and profitable growth.
Jumia intends to reduce its cash utilization further than the fiscal year 2023. It also projects an increase in both orders and GMV in 2024.
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