Jumia, the e-commerce company, has shown significant improvement in liquidity, with a $19 million increase year-over-year. This improvement can be attributed to strategic actions taken by the company, including a 74% reduction in sales and advertising expenses, which amounted to $4.3 million. The reduction in expenses reflects Jumia’s efforts to streamline operations and focus on profitability.

Although there has been an 11% decrease in revenue, amounting to $45 million, and a 25% drop in Gross Merchandise Volume (GMV), which reached $181 million, Jumia has observed positive developments in key performance areas. The company’s operating loss has seen a notable decline of 57% to $19 million year-over-year.

Jumia has implemented strategic initiatives, including withdrawing from economically unsustainable markets, resulting in a downturn in active customers and orders by 24.3% and 23% respectively. However, promotional activities, particularly in digital categories like airtime, have driven an increase in orders from the second quarter to the third quarter of 2023.

Despite challenges such as high inflation and import restrictions affecting consumer spending and retailer stock levels, Jumia experienced a 10% GMV growth across five countries. Additionally, the company saw an 11% sequential increase in orders from Q2 to Q3 of 2023 due to its promotional efforts.

Jumia has also announced a strategic partnership with Starlink to distribute Starlink’s residential kits in Nigeria by the end of the year. This move is expected to significantly enhance Jumia’s product offerings. Furthermore, JumiaPay transactions have grown by 8% year-over-year, with nearly half of the platform’s orders utilizing JumiaPay.

The Total Payment Volume (TPV) for Q3 2023 was reported at $48.1 million, marking a 28% decrease year-over-year. However, on a constant currency basis, there has been a 3% increase. The TPV as a percentage of GMV has remained steady at approximately 27%.

As a result of these positive developments, Jumia has adjusted its guidance for adjusted EBITDA losses, placing it between $80 million and $90 million for the fiscal year. This update has increased investor confidence, leading to a 7.5% surge in Jumia’s stock price following the release of these financial results.