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According to Rocket Internet’s recent financial report for 2016, Jumia lost €60.2 million in revenue.

Jumia, Africa’s leading e-commerce giant is an ecosystem of e-commerce, marketplace, websites and applications. The company is most notable for its e-commerce prowess which makes it one of the leading online stores in Africa.

Rocket Internet can be called the “Father of Jumia” because Jumia is a subsidiary under the company. Rocket Internet is an internet company that establishes startups and online businesses.

READ MORE: Eight (8) (Everything) You Need To Know about Jumia Mobile Week 2017

Jumia recorded a huge revenue loss in the year 2016. The company recorded €84.4 million revenue last year compared to €144.6 million revenue made in year 2015, indicating a 41.7 percent drop. The revenue drop was due to the company’s switch from the retail model to the marketplace model and also the the decrement of its gross merchandise volume.

The macro- economic downturn in the company’s biggest markets, Nigeria and Egypt is said to be the major factor that contributed to the decrement of the company’s gross merchandise volume. For the specifics, the exact figures for the decrement in its gross merchandise volume are €320.5 million in 2015 and €276.9 million in 2016.

READ MORE: Jumia Launches ‘Jumia Local’ In Kenya

It wasn’t all that negative for the company’s last year as the company’s Gross Profit Margin increased in 2016 from a 17.0 percent in 2015 to 35.6 percent. Also, Jumia’s Adjusted EBITDA was ameliorated from €-161.3 million in 2015 to €-91.9 million in 2016.

All Rocket Internet’s companies recorded increase in revenues except Jumia as deduced from the report. Rocket Internet’s revenue was also seen to drop by 61 percent from €128.5 million in 2015 to €50.4 million last year.

“Our business model remains unchanged. We build and invest in great Internet companies around the globe and support our companies with operational expertise and capital over their development lifecycle, thereby enabling entrepreneurship and providing our shareholders with a diversified exposure to the global Internet sector,” said Oliver Samwer, Rocket Internet’s Chief Executive Officer.

READ MORE: JUMIA Delivery Man Murdered In Port Harcourt

A rebranding of all Africa Internet Group’s Subsidiaries including Jumia was done last year. The subsidiaries were all rebranded into Jumia. The rebrand was to make the customers have ease of access to all the services via a single platform. The rebrand also brought about increased efficiency.

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