Jumia has successfully closed the sale of 20 million ordinary shares, achieving its funding target of $99.6 million. The transaction, detailed in a recent securities filing, was completed with an average share price of approximately $4.95, slightly above Friday’s trading price. Notably, liquor and wine maker Pernod Ricard acquired 1.27 million shares valued at around $6 million.
The substantial funds raised are expected to bolster Jumia’s cash position, which stood at $92.8 million in Q2 2024. This capital infusion comes at a crucial time as Jumia faces projected losses of $65 million for the full year 2024. The additional funding will be directed towards acquiring more customers, expanding the supplier base, and enhancing the logistics network.
Jumia plans to invest in technology improvements and marketing efforts, which are pivotal for its growth strategy. Despite missing revenue targets in Q2 2024, investor confidence remains strong in Jumia’s potential to dominate Africa’s e-commerce market. The company is poised to leverage this funding to strengthen its market position and drive future success.
Jumia’s ability to secure this investment underscores its commitment to scaling operations and enhancing its service offerings across the continent. The company continues to focus on building a robust platform that supports both vendors and customers, aiming to solidify its role as a leading e-commerce player in Africa.
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