Business

Jumia CEOs Sacha Poignonnec & Jeremy Hodara Step Down Over Company’s Persistent Losses

The founders and co-Chief Executive Officers(CEO) of Jumia Technologies, Sacha Poignonnec, and Jeremy Hodara, have both stepped down from their positions over persistent losses.

Truetells Nigeria reports that the move, which was with immediate effect, saw Francis Dufay, who has since 2014 held various leadership roles at the company assume the role of the acting CEO.

According to Bloomberg, the development was necessitated by persistent losses and a slumping share price of the Africa-focused e-commerce group.

Jumia is reported to be struggling with slumping share price, as it listed in the US in 2019, and the shares have since lost 71% of their value.

The stock slumped 13% as of 12:19 p.m. in New York.

Bloomberg added that a search for a permanent replacement for the former leaders was underway.

However, in a statement, the Chairman, Jonathan Klein, said, “We want to bring more focus to the core e-commerce business as part of a more simplified and efficient organization with stronger fundamentals and a clearer path to profitability.”

Poignonnec and Hodara were former colleagues at McKinsey & Co who founded Jumia in 2012 with a plan to introduce online retail and trading of goods to African markets.

The group, which operates out of Lagos, Nigeria, pursued expansion into the likes of food delivery but has yet to make a profit, Bloomberg noted.

TruetellsNigeria

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