African e-commerce firm Jumia completes $99.6m secondary share sale

Almost two weeks ago, TechCrunch reported that African e-commerce giant Jumia planned to sell 20 million American depositary shares (ADS) and lift over $100 million, given the stock was trading at around $5.70 on the time.

The retailer just accomplished the sale of 20,227,736 ADSs in the marketplace. Jumia sold the shares at a median price of $4.92 per ADS, generating total gross proceeds before commissions and offering expenses of $99.6 million. TechCrunch reported that Jumia is more likely to sell at this price.

Jumia Chief Executive Francis Dufay said in an announcement that the capital “will further strengthen our balance sheet and help us accelerate our growth path as we progress towards profitability.”

Jumia’s money position now stands at $92.8 million (including $45.1 million in money and money equivalents and $47.7 million in term deposits and other financial assets) in comparison with Q2 2024. latest financial reportFor comparison, the platform’s liquidity within the fourth quarter of 2023 amounted to $120.6 million, and in the primary quarter of 2024 – $101.5 million.

Jumia ended the second quarter of the 12 months with 2 million quarterly energetic customers, which is 6.0% quarter-on-quarter in comparison with Q1 2024 and flat year-on-year growth between Q2 2023 and Q2 2024. “Our customer base is still relatively small, around two million active consumers per quarter, while we operate in markets with over 600 million people. So we can do a lot more in our customer base,” Dufay Told TechCrunch before making his first secondary stock sale as CEO earlier this month.

In 2020-2021, when private and public markets were awash with capital, the web retailer raised nearly $600 million in secondary share sales.