Jumia raises $50m as Nigeria drives e-commerce growth, losses narrow

Jumia Technologies has raised $50 million in fresh capital, anchored by a $25 million investment from the International Finance Corporation (IFC), as the African e-commerce company reported stronger sales and narrowing losses in the second quarter of 2026.

The company disclosed the capital raise alongside its Q2 results for the three months ended June 30, 2026, marking a significant boost to its balance sheet as it pushes towards profitability.

Jumia’s revenue rose 14 percent year-on-year to $52 million, while gross merchandise value (GMV) increased 20 percent to $216.3 million. Adjusted for changes in its market footprint, GMV growth was 23 percent.

The company’s gross profit climbed 28 percent to $30.7 million, while its adjusted EBITDA loss narrowed 36 percent to $8.7 million, compared with $13.6 million a year earlier.

Loss before income tax also improved by 33 percent to $10.9 million.

Nigeria emerged as Jumia’s strongest market during the quarter. Orders in the country increased 34 percent year-on-year, while GMV rose 36 percent, highlighting the importance of Nigeria to Jumia’s growth strategy.

Jumia recorded 6.3 million physical-goods orders during the quarter, up 26 percent year-on-year, while quarterly active customers increased 24 percent.

International sellers also gained traction, with gross items sold rising 96 percent, driven largely by the expansion of Chinese sellers and affordable fashion suppliers in Turkey.

The results came despite supply disruptions affecting smartphones and electronics, higher fuel costs and weaker consumer demand in Ivory Coast linked to falling cocoa prices.

Jumia said it deliberately prioritised margins and unit economics over pursuing GMV growth through discounts.

Marketplace revenue rose 34 percent to $28.8 million, while advertising revenue jumped 88 percent to $3.5 million as more sellers adopted Jumia’s retail media offerings.

The firm is also using artificial intelligence to reduce operating costs.

Jumia said AI-driven automation is being deployed across operations, finance, customer support and technology, including cybersecurity and code-quality workflows. AI is also being used in logistics, customer service and seller management.

The cost-cutting programme has reduced Jumia’s workforce to just over 1,770 employees as of June 30, down 11 percent from March 2026 and significantly below the 4,318 employees recorded at the end of 2022.

Despite the stronger operating performance, Jumia’s liquidity position fell to $48.3 million at the end of June, after declining by $14.3 million during the quarter.

The new $50 million investment is therefore expected to provide additional financial capacity as the company scales its operations.

Jumia maintained its target of achieving adjusted EBITDA breakeven and positive cash flow in the fourth quarter of 2026, with full-year profitability and positive cash flow targeted for 2027.

It expects GMV to grow between 20 percent and 30 percent in 2026.