Jumia Expands Into Small African Cities In An Attempt To Arrest Losses: Report - Jumia Technologies (NYSE:JMIA)

Jumia Technologies AG JMIA has reportedly reached an agreement to sell French retailer Leroy Merlin's products in West Africa.
The agreement is a part of the company's plan to expand its business reach and cut losses by half by 2023 end, reported Bloomberg.
Jumia will sell the French company's tools and do-it-your-self products in Ivory Coast and Senegal, focused on smaller cities and rural areas with high growth potential.
"Jumia is pushing into these areas, we have the right suppliers and assortment of products, and a light logistics model to address those smaller pool of consumers," the report cited Jumia CEO Francis Dufay.
"This would be much harder to do for bigger supermarkets and shops for instance."
Dufay said Jumia would need only 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 Clocks Over 7% Revenue Growth In Q4; Updates On CEO
Price Action: JMIA shares closed higher by 11.2% at $3.29 on Tuesday.