Jumia Raises $50M as IFC, Axian Back Push Toward Profitability : TechMoran

Jumia has raised $50 million in fresh equity from a group of investors led by the International Finance Corporation (IFC), with Axian and other backers providing the remaining capital as the e-commerce firm pushes toward profitability. The financing includes a $25 million investment from IFC; investors agreed to purchase about 9.1 million new American Depositary Shares at $5.52 each, according to regulatory filings. The funding arrives alongside improving operating metrics: second-quarter revenue rose 14% year-on-year to $52 million, gross merchandise value (GMV) increased 20% to $216.3 million, and gross profit climbed 28% to $30.7 million.

“Jumia demonstrates how pan-African e-commerce platforms can expand economic opportunity at scale,” said Farid Fezoua, IFC’s director for Equity, Funds and Venture Capital.

The financing gives Jumia additional runway as it chases a turnaround that is beginning to show measurable gains. Adjusted EBITDA loss narrowed 36% to $8.7 million from $13.6 million a year earlier, while operating loss fell 25% to $12.4 million. Quarterly active customers reached 2.6 million and physical-goods orders rose to 6.3 million; orders adjusted for markets Jumia has exited increased 28% year-on-year. Nigeria stood out during the quarter, with GMV rising 36% and orders increasing 34%.

Jumia ended June with $48.3 million in liquidity, down from $62.6 million at the end of March after using $11.8 million in operating cash during the second quarter. The company said it will use the proceeds to support growth in its core African markets, improve operational efficiency and strengthen its marketplace and logistics infrastructure. Jumia has spent recent years scaling back from an aggressive pan-African expansion, exiting markets including South Africa, Tunisia and Algeria, cutting costs and concentrating resources on eight core African markets — a strategy it says is producing stronger operating metrics.

Strategic and economic impact

Beyond balance-sheet support, IFC framed the investment as a bet on digital commerce infrastructure to expand economic opportunity. The World Bank Group projected the investment could help about 60,000 local active sellers reach broader markets, support around 1,800 direct jobs and create income-generating opportunities for more than 100,000 independent sales agents. International commerce is also growing within Jumia’s marketplace: orders from international sellers increased 96% year-on-year in the second quarter, helped by a growing base of Chinese sellers and affordable fashion products sourced from Turkey.

Jumia CEO Francis Dufay said the financing marked an important validation of the company’s progress. He said the $50 million raise “was a milestone for the company and validated the progress made in recent years,” underlining management’s belief that the group’s repositioning is beginning to pay off.

Outlook

Management has set clear targets tied to the new capital: adjusted EBITDA breakeven and positive cash flow in the fourth quarter of 2026, followed by full-year profitability in 2027. If Jumia meets those targets, the fresh $50 million could represent a pivotal step for one of Africa’s most prominent publicly listed technology companies — transforming improved quarterly metrics into sustained, profitable operations.