- Jumia Technologies AG JMIA has reportedly reached an agreement to sell French retailer Leroy Merlin’s products in West Africa.
- The deal is part of the company’s plan to expand its business reach and halve losses by the end of 2023, as reported Bloomberg.
- Jumia will distribute the French company’s tools and do-it-yourself products in Côte d’Ivoire and Senegal, with a focus on smaller towns and rural areas with high growth potential.
- “Jumia is pushing into these areas, we have the right suppliers and product ranges and an easy logistics model to cater to this smaller group of consumers,” the report quoted Jumia CEO Francis Dufay as saying.
- “For larger supermarkets and shops, for example, this would be much more difficult.”
- Dufay said Jumia would require a fraction of the capital to expand into smaller cities compared to larger areas.
- Jumia is considering taking the model to Kenya, Nigeria and Ghana next, he added.
- Related: Jumia Achieves Over 7% Revenue Growth In Q4; Updates on the CEO
- price action: JMIA shares closed up 11.2% at $3.29 on Tuesday.
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