Jumia Secures $50 Million Investment from IFC and Axian to Accelerate Path to Profitability

Jumia has raised $50 million in new funding to support its push toward profitability, with the International Finance Corporation (IFC) leading the investment by contributing $25 million. Additional backing came from Axian and other institutional investors. The capital was raised through the purchase of approximately 9.1 million American depositary shares priced at $5.52 per share, strengthening Jumia’s financial position as it looks to achieve break-even operations.

The funding arrives at a critical time for Jumia, whose liquidity had declined significantly. At the end of June, the company reported total liquidity of $48.3 million, including $47.4 million in cash and cash equivalents—down from $77.8 million at the close of 2025. Over the same period, total equity dropped sharply to $367,000 from $25.7 million, underscoring the urgent need for additional capital to sustain operations and fuel expansion.

Despite these liquidity pressures, Jumia’s operating performance showed signs of improvement during the second quarter. Revenue increased 14% year-over-year to $52 million, while gross merchandise value (GMV) rose 20% to $216.3 million. Gross profit climbed 28%, reaching $30.7 million, and the adjusted EBITDA loss narrowed by 36% to $8.7 million. These gains were supported by rising order volumes and an expanding customer base.

Jumia intends to deploy the newly secured funds to drive growth, enhance operational efficiency, and strengthen its marketplace and logistics infrastructure across its network of eight African markets. The company has been expanding beyond major cities, with orders from secondary and tertiary urban areas accounting for 61% of total volume in the quarter. In line with its restructuring efforts, Jumia has reduced staffing levels and exited underperforming markets such as Algeria earlier this year, redirecting resources toward higher-return segments.

Looking ahead, Jumia aims to reach adjusted EBITDA break-even and generate positive cash flow by the fourth quarter of 2026. The company’s longer-term target includes achieving full-year adjusted EBITDA profitability and sustained positive cash flow throughout 2027. IFC noted that its participation in the funding round is expected to indirectly support around 60,000 sellers, create approximately 1,800 jobs, and provide income-generating opportunities for over 100,000 sales agents across the region.

This latest investment builds on Axian’s growing involvement with Jumia, following the telecom group’s acquisition of an 8% stake in 2025. Together, the new capital and strategic backing offer Jumia greater runway to execute its turnaround strategy amid evolving market dynamics.

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