Jumia has raised $50 million in fresh equity from investors led by the International Finance Corporation (IFC), providing the African e-commerce company with additional capital as it continues its push toward profitability.
The financing includes a $25 million investment from IFC, with Axian and other investors contributing the remaining $25 million. The investors agreed to purchase approximately 9.1 million new American Depositary Shares at $5.52 each.
The funding follows improved operating performance in Jumia’s second quarter. Revenue increased 14% year-on-year to $52 million, while gross merchandise value rose 20% to $216.3 million and gross profit increased 28% to $30.7 million.
Jumia also reduced its losses, with adjusted EBITDA loss narrowing 36% to $8.7 million and operating loss declining 25% to $12.4 million.
The company is targeting adjusted EBITDA breakeven and positive cash flow in the fourth quarter of 2026, followed by full-year profitability in 2027.
The new capital is expected to support growth across Jumia’s core African markets, improve operational efficiency and strengthen its marketplace and logistics infrastructure.
The company has focused on restructuring its operations in recent years, exiting markets including South Africa, Tunisia and Algeria while concentrating resources on eight core African markets.
The strategy has contributed to stronger operating metrics, with quarterly active customers reaching 2.6 million and physical-goods orders rising to 6.3 million. On an adjusted basis excluding exited markets, orders increased 28% year-on-year.
Nigeria was among the strongest-performing markets during the quarter, with GMV increasing 36% and orders rising 34%. Orders from international sellers also increased 96% year-on-year, supported by a growing base of Chinese sellers and products sourced from Turkey.
For IFC, the investment reflects the potential of digital commerce infrastructure to expand economic opportunities across Africa. The World Bank Group estimates the investment could help around 60,000 local active sellers access broader markets, support approximately 1,800 direct jobs and create income-generating opportunities for more than 100,000 independent sales agents.
The latest funding gives Jumia additional financial capacity as it seeks to demonstrate that e-commerce can achieve sustainable growth in African markets and reach its profitability targets.
