Africa’s e-commerce giant Jumia Technologies AG has secured $50 million in fresh funding, anchored by a $25 million investment from the International Finance Corporation (IFC), a member of the World Bank Group.
Jumia announced the capital raise alongside its second-quarter 2026 financial results on Wednesday, saying the transaction was priced on August 11, 2026.
The funding round also includes participation from Axian, one of Jumia’s largest shareholders, as well as other existing and new 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 transaction remains subject to customary closing conditions and is expected to be completed in the second half of August 2026.
Jumia said it plans to use the net proceeds to support its next phase of growth, improve operational efficiency across its core African markets and strengthen its integrated marketplace and logistics network.
The funding comes as the company continues its drive toward profitability.
Jumia Chief Executive Officer Francis Dufay said the company 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,” Dufay said.
He added that Jumia remained firmly on track to achieve adjusted EBITDA breakeven and positive cash flow in the fourth quarter of 2026, followed by full-year profitability on an adjusted EBITDA basis and positive cash flow in 2027.
The fresh funding announcement came alongside a stronger second-quarter performance, with Jumia reporting revenue of $52 million, representing a 14% increase from the same period last year, or 15% on a constant-currency basis.
The revenue growth was driven by stronger transaction volumes, although the increase was partly moderated by a higher proportion of third-party sales compared with first-party sales.
Third-party transactions generate commission income for Jumia rather than the full value of the underlying merchandise being recognised as revenue.
Dufay said the second-quarter performance demonstrated the resilience of Jumia’s business model despite several challenges affecting its markets.
He pointed to supply disruptions affecting phones and electronics, higher fuel costs and a slowdown in demand in Ivory Coast linked to cocoa prices.
Despite the headwinds, gross merchandise volume (GMV) and physical goods orders, adjusted for perimeter effects, grew 23% and 28%, respectively, year on year.
Jumia’s adjusted EBITDA loss also narrowed by 36% to $8.7 million.
Gross profit increased 28% year on year, reflecting continued progress in the company’s marketplace monetisation strategy.
Dufay said Jumia deliberately prioritised margins and unit economics during the quarter rather than pursuing GMV growth at the expense of profitability.
Marketplace revenue, which includes third-party sales, marketing and advertising revenue and value-added services, increased 34% year on year to $28.8 million, or 36% on a constant-currency basis.
Third-party sales revenue rose 26% to $23.5 million, while marketing and advertising revenue surged 88% to $3.5 million.
Jumia attributed the growth in advertising revenue to increased use of sponsored products and stronger adoption of retail media advertising among sellers.
The proportion of sellers using retail media advertising rose to 26% in the second quarter of 2026, compared with 19% in the corresponding period of 2025.
Value-added services revenue also increased 61% to $1.9 million, driven largely by higher warehousing fees as more goods moved through Jumia’s storage infrastructure, particularly products 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.
Jumia’s latest performance builds on improvements recorded in 2025.
The company reported a 13% year-on-year increase in full-year 2025 revenue to $188.9 million, up from $167.5 million in 2024.
Its operating loss declined 4% to $63.2 million from $66 million, while adjusted EBITDA loss narrowed 2% to $50.5 million.
Loss before income tax also fell significantly, declining 38% to $60.1 million from $97.6 million in 2024.
Founded in 2012, Jumia was once widely described as “Africa’s Amazon,” but its expansion across the continent has faced significant challenges.
The company has contended with competition from informal retail channels, currency devaluations across its markets and years of persistent cash burn.
The latest capital injection provides additional financial capacity as Jumia attempts to improve efficiency, strengthen its marketplace and logistics operations and move closer to sustainable profitability.
With IFC anchoring the funding round and existing shareholders participating, the investment also signals continued investor confidence in Jumia’s long-term prospects as Africa’s digital commerce market develops.
