Africa e-commerce platform Jumia Technologies AG Jumia Group (listed on NYSE) has secured approximately US$50 million in fresh equity capital through a private placement with the IFC - International Finance Corporation, a member of the World Bank Group, and other investors including major shareholder AXIAN Group.
Under a Subscription Agreement signed on August 12, IFC agreed to subscribe for 9,057,970 new ordinary bearer shares, to be delivered in the form of American Depositary Shares (ADSs), each representing two ordinary shares, for roughly US$25 million. Concurrently, Axian and other investors entered into separate Share Purchase Agreements to buy 4,528,983 new ADSs for an additional approximately US$25 million. Certain of those investors received registration rights.
Overall, the investors committed to purchase 9,057,968 ADSs at a price of US$5.52 per ADS, generating expected gross proceeds of US$50 million for Jumia. The shares are being issued from the company’s authorized capital 2026/I, with existing shareholders’ statutory subscription rights excluded.
In connection with its investment, IFC and Jumia also signed a Policy Agreement under which the company committed to comply with IFC’s environmental, social and governance standards. These include adherence to IFC performance standards, implementation of an agreed environmental and social action plan, compliance with IFC’s exclusion list and anti-corruption guidelines, and ongoing reporting obligations.
The transactions are expected to close in the second half of August 2026, subject to customary closing conditions. Jumia said it intends to use the net proceeds to support its next phase of growth, enhance operational efficiency across its core African markets, and strengthen its integrated marketplace and logistics network.
The ADSs and underlying ordinary shares have not been registered under the U.S. Securities Act of 1933 and are being offered in reliance on applicable exemptions from registration requirements.
The capital raise was announced alongside Jumia’s second-quarter 2026 results, which showed continued progress toward profitability. The company reported revenue of $52 million (up 14% year-on-year) and a narrowed adjusted EBITDA loss, while reiterating its target of achieving adjusted EBITDA breakeven and positive cash flow in the fourth quarter of 2026.
CEO Francis Dufay described the investment, anchored by the IFC and joined by existing leading shareholders and selected new investors, as a strengthening of the balance sheet that supports the company’s path to sustainable profitability.
The full texts of the Subscription Agreement (including the form of Policy Agreement) and the form of Share Purchase Agreement were filed as exhibits to Jumia’s Form 6-K with the U.S. Securities and Exchange Commission.
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