Jumia raises $50 million as it tries to turn growth into profit

Africa’s leading e-commerce company, Jumia, has secured $50 million in new equity funding as it enters a crucial phase in its long-standing effort to achieve profitability.

The funding comes from the International Finance Corporation (IFC), Axian Telecom, and other investors, with the IFC contributing approximately $25 million and Axian, along with others, providing the remainder, as reported by Jumia CEO Francis Dufay to Bloomberg.

This new capital allows the e-commerce giant to support its operations while striving to expand its marketplace and avoiding the excessive spending that characterised its earlier years.

For Jumia, finding this balance is essential. The company is experiencing growth, but it has yet to transition from merely reducing losses to generating profits.

Recent figures shed light on why investors are optimistic about Jumia’s turnaround. Revenue reached $52 million in the second quarter of 2026, reflecting a 14% increase compared to the previous year. Meanwhile, gross merchandise value (GMV), which measures the total value of goods sold through the platform, grew by 20%, totalling $216.3 million.

The company also saw an increase in sales. Orders rose by 28%, and the number of active customers grew by 24%. Additionally, Jumia’s adjusted EBITDA loss decreased by 36%, dropping from $13.6 million to $8.7 million compared to the same quarter last year.

Similar read: Jumia ceases operation in Algeria

This reduction in losses is significant because Jumia is not solely relying on growth to overcome its financial challenges. Under CEO Francis Dufay, the company has spent recent years cutting costs, exiting certain markets, and reducing its workforce to enhance operational efficiency.

The company exited South Africa and Tunisia in 2024 and left Algeria earlier this year, refocusing on markets where it sees stronger growth and profitability potential. As a result, the company now operates with a significantly smaller cost base than it did a few years ago.

Nigeria remains important to Jumia

Jumia’s business in Nigeria has consistently outperformed its other markets. In the fourth quarter of 2025, the company’s gross merchandise value (GMV) in Nigeria rose by 50% compared to the previous year, while orders increased by 33%. The positive trend continued into the first quarter of 2026, with physical goods GMV up by 42% year-on-year.

This growth is important because Jumia is focusing on strengthening its operations in its best-performing markets, rather than trying to expand everywhere. The company has also invested in logistics, including a new 30,000-square-metre warehouse in Lagos to help manage more orders and reduce delivery costs and time.

Jumia aims to achieve adjusted EBITDA breakeven and positive cash flow by the fourth quarter of 2026, with a goal for overall profitability in 2027. This strategy is part of a broader restructuring effort.

The new $50 million funding is timely. The company needs capital to continue expanding its marketplace while showing that any new investments will yield better returns than in the past. This marks a shift from previous years when aggressive expansion across Africa led to significant losses.

Now, the strategy is simpler: focus on fewer markets, increase orders and customers, enhance logistics, and control costs. The new funding provides increased flexibility, and the challenge is whether Jumia can use it to grow while keeping costs low enough to drive profitability.

After years of restructuring, 2026 will be a crucial year for Jumia to demonstrate that it can achieve more than just reduced losses.