- JMIA's forward revenue growth, lack of profitability, and high amount of risks put downward pressure on a seemingly exuberant valuation.
- With operations in just 11 countries, JMIA has access to 70% of Africa's GDP and internet users, therefore, the payoff for expansion looks poor.
- Risks such as infrastructure, urban development, internet access, political instability/corruption, and cash burn could impede growth potential.
- JMIA trades at 20x FY20 sales, 17x FY21 sales, and 40x book multiples.
For further details see:
Jumia's Growth And Risky Nature Not Enough To Support Valuation