Jumia has priced a $50 million equity raise led by the International Finance Corporation as the e-commerce company adds cash while working toward break-even. IFC will invest $25 million, with Axian and other investors providing the rest. The investors will buy about 9.1 million American depositary shares at $5.52 each.
The funding comes as Jumia’s cash position has fallen. Its liquidity stood at $48.3 million at the end of June, including $47.4 million in cash and cash equivalents, compared with $77.8 million at the end of 2025. Total equity fell to $367,000 from $25.7 million over the same period.
Operating results have moved in the other direction. Second-quarter revenue rose 14% from a year earlier to $52 million, while gross merchandise value increased 20% to $216.3 million. Gross profit climbed 28% to $30.7 million and adjusted EBITDA loss narrowed 36% to $8.7 million. Orders and customer numbers also rose.
Jumia plans to use the proceeds to support growth, improve efficiency and strengthen its marketplace and logistics network across its 8 African markets. The company has pushed further into cities outside major urban centers, which accounted for 61% of orders in the quarter. It has also cut staff and exited markets, including Algeria in early 2026, as management focuses spending on businesses that can support profit.
Keep up with the latest headlines on WhatsApp | LinkedIn
Jumia is targeting adjusted EBITDA break-even and positive cash flow in the fourth quarter of 2026, followed by full-year adjusted EBITDA profit and positive cash flow in 2027. IFC said its investment could support about 60,000 sellers, around 1,800 jobs and income opportunities for more than 100,000 sales agents. The deal also adds to Axian’s relationship with Jumia after the telecom group bought an 8% stake in 2025.
Key Takeaways
The $50 million raise gives Jumia more time to prove that its cost cuts and marketplace strategy can turn growth into cash. The company entered the second half of 2026 with $48.3 million of liquidity after using $29.6 million in the first 6 months of the year. Without new capital, that cash burn would have left less room for investment in logistics, inventory support and customer growth. The new shares change that picture, but they also dilute existing shareholders and do not remove the need to reach break-even.
What matters now is whether Jumia can keep order and GMV growth while reducing losses. Its Q2 results show progress: orders rose, gross profit increased and the adjusted EBITDA loss fell. The shift toward third-party sellers also reduces the amount of capital Jumia needs to hold inventory. At the same time, the company faces fuel costs, supply problems in phones and electronics and weaker demand in Ivory Coast.
Sign up for free AllAfrica Newsletters
Get the latest in African news delivered straight to your inbox
IFC’s role adds another point of interest. Its investment links Jumia’s financing to a development case built around sellers, jobs, logistics and digital commerce. For Jumia, the next test is execution: turning the new capital into enough scale and margin to stop relying on equity raises.