Africa’s e-commerce giant, Jumia Technologies AG, has secured $50 million through a capital raise anchored by a $25 million investment from the International Finance Corporation (IFC), a member of the World Bank Group. The transaction, priced on August 11, 2026, includes participation from Axian, one of Jumia's largest shareholders, alongside other investors.
Under the terms of the agreement, investors will purchase 9.1 million American Depositary Shares (ADSs) at $5.52 per ADS. The transaction remains subject to customary closing conditions and is expected to close in the second half of August 2026.
IFC Anchors Fifty Million Dollar Funding
Jumia plans to deploy the net proceeds to support its next phase of growth and improve operational efficiency across its core African markets. The funding will also be used to strengthen its integrated marketplace and logistics network.
The capital injection comes as the e-commerce platform continues its aggressive push toward financial sustainability. Chief Executive Officer Francis Dufay stated that the investment will strengthen the balance sheet as the company executes its strategic plan.
Marketplace Growth Drives Second Quarter Revenue
Alongside the funding announcement, Jumia released its Q2 2026 financial results, showing revenue of $52 million. This represents a 14% year-on-year increase, or 15% when measured on a constant currency basis.
The revenue growth was primarily driven by marketplace revenue, which rose 34% year-on-year to $28.8 million, or 36% on a constant currency basis. Within this segment, third-party sales revenue increased 26% to $23.5 million, while marketing and advertising revenue surged 88% to $3.5 million.
The surge in advertising revenue was supported by a higher adoption of retail media advertising among sellers, which rose to 26% in Q2 2026 from 19% in Q2 2025. Additionally, value-added services revenue grew 61% to $1.9 million, driven by higher warehousing fees from Chinese sellers utilizing Jumia's storage infrastructure.
However, first-party sales revenue declined 3% year-on-year to $22.8 million. Jumia attributed this decline to supply and demand challenges affecting high-value electronic products and mobile phones.
Targeting Profitability by Late 2026
Despite headwinds such as rising fuel costs, supply disruptions in electronics, and a demand slowdown in Ivory Coast due to cocoa prices, Jumia improved its key performance metrics. Gross merchandise value (GMV) and physical goods orders grew by 23% and 28% respectively, after adjusting for perimeter effects.
The company's Adjusted EBITDA loss narrowed by 36% to $8.7 million, while gross profit grew 28% year-on-year. Dufay emphasized that Jumia chose to protect its margins and unit economics during the quarter rather than chasing GMV growth at the expense of profitability.
Jumia remains on track to achieve Adjusted EBITDA breakeven and positive cash flow in the fourth quarter of 2026. The company is also targeting full-year profitability on an Adjusted EBITDA basis and positive cash flow in 2027.
This progress follows a turbulent journey since its founding in 2012. For the full year 2025, Jumia reported a 13% increase in revenue to $188.9 million, up from $167.5 million in 2024. Its operating loss for 2025 declined 4% to $63.2 million, while its loss before income tax fell 38% to $60.1 million from $97.6 million in 2024.
