Jumia raises $50 million led by IFC as Q2 revenue rises 14%

Africa's leading e-commerce platform, Jumia Technologies AG, has successfully raised $50 million in a capital increase, with the International Finance Corporation (IFC) committing $25 million. Jumia shared this news alongside its Q2 2026 financial results on Wednesday, revealing that the transaction was priced on August 11, 2026, and involves participation from Axian, the company's largest shareholder, as well as other investors.

The investors will purchase 9.1 million American Depositary Shares (ADSs) at $5.52 per ADS, generating the expected $50 million in gross proceeds. These funds are earmarked for Jumia's future growth, efficiency improvements in its African markets, and strengthening its integrated marketplace and logistics network. The company aims to achieve Adjusted EBITDA breakeven and positive cash flow by the fourth quarter of 2026.

CEO Francis Dufay declared that Jumia remains on track to achieve this goal. Revenue for the second quarter of 2026 stood at $52 million, a 14% increase year-on-year, or 15% on a constant currency basis. This growth was fueled by stronger transaction volumes, though it was slightly tempered by a higher proportion of third-party sales.

Marketplace revenue, which includes third-party sales, marketing, and advertising, rose 34% year-on-year to $28.8 million, or 36% on a constant currency basis. The marketing and advertising revenue saw a 34% increase year-on-year to $28.8 million, driven by a growing adoption of retail media advertising among sellers. First-party sales revenue, however, dropped 3% year-on-year to $22.8 million due to supply and demand challenges affecting higher-value electronic products.

On a full-year basis, Jumia reported a 13% year-over-year growth in revenue to $188.9 million, up from $167.5 million in 2024. Founded in 2012, Jumia, once dubbed "Africa's Amazon," has faced significant challenges, including intense competition, currency devaluations, and persistent cash burn.