Jumia, the African e-commerce giant, has successfully completed a transaction offering of 20,227,736 American depositary shares (ADSs), according to a report by TechCrunch. The shares were sold at an average price of $4.92 per ADS, generating a total of $99.6 million in gross proceeds before commissions and offering expenses. This comes after TechCrunch’s earlier report that Jumia was planning to sell 20 million ADSs and raise over $100 million.
The capital raised from this transaction will further strengthen Jumia’s balance sheet and accelerate its growth trajectory as the company aims to achieve profitability. Jumia CEO, Francis Dufay, expressed confidence in the raised capital, stating that it will help the company progress along its path to profitability.
Jumia’s cash position currently stands at $92.8 million, which includes $45.1 million in cash and cash equivalents and $47.7 million in term deposits and other financial assets. This is based on the company’s most recent financial report for Q2 2024. It is worth noting that Jumia’s liquidity position was $120.6 million in Q4 2023 and $101.5 million in Q1 2024, indicating a slight decrease over time.
In terms of customer base, Jumia reported 2 million active quarterly customers in Q2 2024, which represents a 6.0% increase compared to Q1 2024. However, the company acknowledges that its customer base is relatively small considering the market potential, as it operates in regions with over 600 million people. Jumia’s CEO, Francis Dufay, emphasized the growth opportunities, stating that there is much more room to expand the customer base.
Jumia has a history of successfully raising capital through secondary share sales. Between 2020 and 2021, during a period of capital abundance in private and public markets, the e-commerce giant raised nearly $600 million. This latest transaction adds to Jumia’s impressive fundraising track record.
Overall, this recent transaction signals Jumia’s commitment to strengthening its financial position and driving growth in the African e-commerce market. With a growing customer base and a solid cash position, the company is well-positioned to capitalize on the vast market potential in the region. As Jumia continues its path to profitability, investors and industry observers will be closely watching its performance and market expansion efforts.