When Jiji launched in 2014, it entered a competitive Nigerian e-commerce scene, already dominated by players like Konga, Jumia, and OLX, who had been around for two years. Despite the competition, Jiji quickly carved out a significant place for itself in the market. The platform’s initial strategy focused on offering free listings for new users, and forming partnerships with phone makers to have its app pre-installed on affordable devices. In 2016, Jiji further strengthened its position by partnering with Airtel, enabling users to access the platform without using mobile data.
As its influence grew, Jiji expanded beyond Nigeria. In 2019, it acquired OLX Africa, taking over operations in several African countries, including Kenya, Ghana, Uganda, and Tanzania. This move expanded Jiji’s reach to 300 million people across the continent, marking the company as a significant player in Africa’s e-commerce sector with a series of strategic acquisitions.
In 2021, Jiji acquired Cars45, a platform specializing in the buying, selling, and trading of used cars across Nigeria, Kenya, and Ghana. The following year, it also acquired Tonaton, its biggest competitor in Ghana.
In an exclusive conversation with TechCabal, Anton Volianskyi, Jiji’s co-founder and CEO, shared insights on the company’s evolution and the hurdles faced in scaling operations across diverse markets.
TC: How did Jiji address the needs of Nigeria’s e-commerce sector in its early days, and how did this influence its early services?
We saw a gap in the market for a platform that allowed users to easily connect and conduct transactions for a wide variety of products and services. At that time, there were concerns about accessibility, affordability, and trust, as scams had created a lot of hesitancy in online transactions. To tackle these issues, Jiji was designed to facilitate direct transactions between users with minimal risk, eliminating intermediaries.
To support this mission, we introduced free listings, rigorous moderation of ads, a security system powered by AI, and a direct messaging feature to connect buyers and sellers, all of which helped increase user trust and safety on the platform.
TC: What were the key factors that fueled Jiji’s growth and user adoption in Nigeria?
We introduced several key features to enhance the user experience. These included free listings for new sellers, content tailored to local languages like Hausa, and search filters customized for Nigerian users. We also partnered with phone manufacturers to pre-install the Jiji app on affordable Android devices, making it easy for users to get started without needing to download the app. Additionally, we ensured that the platform was optimized for low data usage to accommodate users in various demographics.
TC: What challenges did Jiji face during its growth, and how were they addressed?
A major challenge was preventing scams. To combat this, we heavily invested in AI tools designed to detect fraudulent activities and block suspicious accounts. We also faced stiff competition from global giants like Ringier and OLX, which had much larger marketing budgets. Instead of competing with big ad spends, we focused on cost-effective marketing and meticulously tracked the return on investment for every dollar spent, which allowed us to stay financially agile and still emerge as a market leader.
The COVID-19 pandemic presented unforeseen obstacles, forcing us to adjust quickly. Although the first quarter was tough, the surge in online activity during the pandemic ultimately accelerated our growth. We also had to adapt to the impact of the naira devaluation, restructuring our financial strategies to align with new economic conditions. Thanks to a focus on cost-efficiency, we managed to avoid large-scale layoffs and emerged as a resilient leader.
TC: How did the acquisitions of Cars45 and Tonaton contribute to Jiji’s growth?
Both Cars45 and Tonaton have been valuable additions to Jiji’s portfolio. Cars45, for example, simplified the car buying process by offering detailed inspection reports and allowing users to book quick inspections and sales at over 70 experience centers. For car sellers, the platform offers valuable insights into market prices based on years of data. Tonaton, meanwhile, has strengthened our position in Ghana, helping us expand our user base and enhance our market dominance. Together, these acquisitions have added specialized services, further boosting Jiji’s reputation as a leader in classifieds.
TC: How does Jiji maintain operational efficiency across its diverse markets?
We rely on technology and a customer-first approach to drive operational efficiency. While we don’t manage logistics or payments directly, we allow buyers and sellers to independently manage transactions, which maintains flexibility and ensures a more personalized experience. Our customer support system, including AI chatbots and dedicated staff, is available to assist users across our various markets.
TC: How does Jiji monetize its platform, and have recent acquisitions diversified its income sources?
Jiji generates revenue mainly through Premium Services, which give sellers greater visibility and access to more potential buyers. Additionally, we generate income from digital advertising, especially from Google banner ads. The acquisitions of Cars45 and Tonaton have further diversified our revenue streams, particularly through verified car sales and enhanced automotive services.
TC: What quality control measures does Jiji have in place to ensure a secure user experience?
We prioritize safety and quality across our platform. Moderation teams are stationed in each of our markets to review ads and ensure they comply with local regulations. Our AI algorithms detect and block suspicious activity automatically, and we offer safety tips through various channels. This proactive approach has helped us build user trust and keep fraud incidents under 1%.
TC: Can you share some key metrics on Jiji’s growth and financial outlook?
Since its inception in 2014, Jiji’s growth has been remarkable. With a staff of over 1,000, the company now attracts 65 million unique visitors annually and boasts over 6 million active listings. The estimated value of these listings exceeds $10 billion, with transaction volumes ranging from $10 to $20 billion each year. Jiji operates in 8 African countries and serves over 200,000 active sellers. Its platform is highly rated by users, with an average rating of 4.7 stars in Nigeria.
TC: What are Jiji’s plans for future growth in Africa?
We’re currently active in 8 countries, including Nigeria, Ghana, Kenya, Uganda, and more. We’ve recently launched Premium Services in Ethiopia and are exploring further expansion in East and West Africa while continuing to strengthen our presence in Nigeria.
TC: How does Jiji plan to stay competitive in the face of growing e-commerce and classifieds competition in Nigeria?
To maintain our position, we’re focused on improving the user experience. We will continue to form partnerships, offer localized features, and develop new tools that meet the evolving needs of our users. Our aim is to keep pace with market demands and maintain the trust and satisfaction of our users.
