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African online retailer Jumia has secured 50 million dollars in fresh cash to keep its business growing.
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The World Bank’s private sector unit, IFC, put up half the funds while telecom group Axian backed the rest.
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The financial lifesaver comes as Jumia narrows losses and targets total profitability by 2027.
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Management plans to spend the funds expanding delivery routes and digital payments into smaller towns.
August 13, (THEWILL) — African online shopping platform, Jumia, has picked up a major financial boost as it pushes toward its goal of becoming profitable.
The company finalised an agreement to raise $50 million through a fresh sale of shares.
The International Finance Corporation (IFC), the private sector investment wing of the World Bank Group, provided $25 million. Madagascar-based telecom giant, Axian Group, and other private backers supplied the remaining $25 million.
Under the terms of the deal, Jumia issued roughly 9.1 million new American depositary shares at a set price of 5.52 dollars each.
Timing of the Deal and Plans for Expansion
The timing of this fresh funding is crucial for the retailer. By the end of June 2026, Jumia saw its available cash reserves shrink to $48.3 million, down from $77.8 million at the start of the year.
Despite the tight liquidity, operational performance has been improving. Chief Executive Officer, Francis Dufay, led a sharp turnaround strategy that cut unprofitable services, including food delivery, while closing operations in markets like South Africa, Tunisia, and Algeria.
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The cost-cutting measures are delivering clear results. Second-quarter revenues rose 14 percent year over year to $52 million, while total product sales value jumped 20 percent. Quarterly losses dropped 36 percent to $8.7 million.
In an official corporate filing explaining the plan for the money, Jumia’s leadership plans to allocate the $50 million toward enhancing its logistics network, warehousing, and JumiaPay payment system, alongside expanding deeper into secondary and tertiary African cities.
Solving last-mile delivery efficiently remains central to sustainable e-commerce on the continent.
The investment also deepens Jumia’s strategic alignment with Axian, whose CEO Hassanein Hiridjee serves on Jumia’s supervisory board. Axian initially acquired an 8% stake in mid-2025 before expanding its holding to ~10%.
Backed by the IFC and experienced operational partners, Jumia is targeting adjusted EBITDA breakeven and positive cash flow in Q4 2026, aiming for full-year profitability in 2027.
Joy Onuorah is a business journalist and brand communications specialist covering financial markets, artificial intelligence, digital economy, and the ideas reshaping business across Africa and the global market. Beyond her reporting for TheWill, Joy uses brand strategy, storytelling, copywriting, and high-value SEO to help brands build lasting market authority.
