Africa’s e-commerce giant, Jumia Technologies AG, has secured $50 million through a capital raise anchored by a $25 million investment from the International Finance Corporation (IFC), a member of the World Bank Group. Jumia announced the fundraising alongside its Q2 2026 financial results on Wednesday, saying the transaction was priced on August 11, 2026 and includes participation from Axian, one of its largest shareholders, as well as other investors. Under the transaction, investors agreed to purchase 9.1 million American Depositary Shares (ADSs) at $5.52 per ADS, generating expected gross proceeds of $50 million. The transactions remain subject to customary closing conditions and are expected to be completed in the second half of August 2026. What they are saying
Jumia said it intends to use the net proceeds to support its next phase of growth, improve efficiency across its core African markets and strengthen its integrated marketplace and logistics network. The fresh funding comes as the company continues to pursue profitability, with Chief Executive Officer Francis Dufay saying Jumia remains on track to achieve Adjusted EBITDA breakeven and positive cash flow in the fourth quarter of 2026.
“The agreed investment anchored by the International Finance Corporation, a member of the World Bank Group, and joined by current leading shareholders and selected new investors, will strengthen our balance sheet as we execute against that plan. “We continue to see ourselves firmly on track toward our target of achieving Adjusted EBITDA breakeven and positive cash flow in the fourth quarter of 2026, and full-year profitability on an Adjusted EBITDA basis and positive cash flow in 2027,” Dufay said. Jumia reported revenue of $52 million in the second quarter, representing a 14% year-on-year increase, or 15% on a constant currency basis. The growth was driven by stronger transaction volumes, although the increase was partly moderated by a higher proportion of third-party sales relative to first-party sales. Third-party transactions generate commission income for Jumia rather than the full value of the underlying merchandise being recognised as revenue. Commenting on the results, Dufay said the Q2 performance demonstrated the resilience of the model the company has built for Africa. “Despite real headwinds — supply disruptions in phones and electronics, rising fuel costs, and a demand slowdown in Ivory Coast tied to cocoa prices — GMV and physical goods Orders, each adjusted for perimeter effects, grew 23% and 28%, respectively, year-over-year, and our Adjusted EBITDA loss narrowed by 36% to $8.7 million.
“Gross profit grew 28% year-over-year, reflecting continued progress in marketplace monetization. Importantly, we deliberately chose to protect our margins and unit economics this quarter rather than chase GMV at the expense of profitability,” Dufay said. More insights
Marketplace revenue, which comprises third-party sales, marketing and advertising revenue and value-added services, rose 34% year on year to $28.8 million, or 36% on a constant currency basis. Third-party sales revenue increased 26% to $23.5 million, while marketing and advertising revenue surged 88% to $3.5 million.
Jumia attributed the increase in advertising revenue to continued growth in sponsored products and greater adoption of retail media advertising among sellers. The proportion of sellers using retail media advertising increased to 26% in Q2 2026, compared with 19% in the same period of 2025. Value-added services revenue rose 61% to $1.9 million, driven largely by higher warehousing fees as more volumes moved through Jumia’s storage infrastructure, particularly from Chinese sellers. First-party sales revenue, however, declined 3% year on year to $22.8 million amid supply and demand challenges affecting higher-value electronic products. What you should know
For full year 2025, Jumia had reported a 13% year-over-year increase in revenue to $188.9 million, up from $167.5 million in 2024. Operating loss for the year declined by 4% year over year to $63.2 million from $66.0 million in 2024, driven by strong usage growth that partly offset weaker corporate sales.
Adjusted EBITDA loss narrowed to $50.5 million, down 2% year over year, while loss before income tax fell significantly by 38% to $60.1 million from $97.6 million in 2024. Founded in 2012, Jumia was once hailed as “Africa’s Amazon,” but its journey has been turbulent. The company has faced steep competition from informal retail channels, currency devaluations across its markets, and persistent cash burn.
