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African e-commerce company Jumia Technologies AG has secured $50 million in fresh capital, anchored by a $25 million investment from the International Finance Corporation (IFC), as the company reported stronger operating performance and narrower losses for the second quarter of 2026.
The fundraising was announced alongside Jumia’s financial results for the three months ended June 30, 2026. The transaction, priced on August 11, includes participation from Axian, one of Jumia’s major shareholders, as well as selected new investors.
Investors to Buy 9.1 Million ADSs
Under the transaction, investors have agreed to purchase approximately 9.1 million American Depositary Shares (ADSs) at $5.52 per ADS, generating expected gross proceeds of $50 million.
The transaction remains subject to customary closing conditions and is expected to be completed in the second half of August 2026.
The IFC’s participation gives the capital raise additional institutional backing as Jumia continues efforts to strengthen its financial position and move closer to sustainable profitability.
Revenue Rises to $52m
Jumia recorded $52 million in revenue during the second quarter, representing a 14% year-on-year increase from $45.6 million in the corresponding period of 2025.
On a constant-currency basis, revenue growth was slightly higher at 15%.
The company also recorded improvement across several operating indicators, suggesting that higher sales activity was accompanied by better marketplace economics.
GMV and Orders Continue to Grow
Jumia’s gross merchandise value (GMV) increased by 20% year-on-year to $216.3 million, reflecting higher transaction volumes across its markets.
Gross profit rose 28% to $30.7 million, while gross margin improved to 14.2% of GMV.
Customer activity also strengthened during the quarter. Orders increased 28%, while the number of quarterly active customers grew 24% year-on-year.
Losses Narrow as Profitability Improves
The improvement in operating performance was accompanied by a reduction in Jumia’s losses.
The company’s operating loss declined 25% to $12.4 million, compared with $16.5 million a year earlier.
Its adjusted EBITDA loss narrowed by 36% to $8.7 million, from $13.6 million in the second quarter of 2025.
The results indicate that Jumia is placing greater emphasis on improving margins and controlling costs rather than pursuing growth solely through aggressive spending.
Nigeria Remains a Key Growth Market
Nigeria delivered one of the stronger performances within Jumia’s operating markets during the quarter.
The company’s Nigerian GMV increased 36% year-on-year, while orders rose 34%, highlighting continued momentum in one of its most important African markets.
The performance comes as Jumia continues to focus resources on its core markets following a broader restructuring of its operations and efforts to improve efficiency.
Jumia Targets 2026 Break-Even
Management said the company remains on track to reach adjusted EBITDA break-even and positive cash flow in the fourth quarter of 2026.
Jumia also expects to achieve full-year profitability on an adjusted EBITDA basis and positive cash flow in 2027.
The latest capital raise is therefore coming at an important stage in the company’s turnaround strategy, providing additional funding as management works to expand its marketplace while reducing cash consumption.
Capital and Growth Strategy
The second-quarter results point to a business that is growing while simultaneously working to improve its path to profitability.
For Jumia, the challenge ahead will be maintaining customer and transaction growth without allowing expansion costs to reverse the recent improvement in margins.
With $50 million in new funding, stronger GMV, rising orders and narrowing losses, the company enters the second half of 2026 with additional financial backing as it pursues its goal of becoming a more sustainable and profitable e-commerce business across Africa.
