Jumia to Raise Over $100 Million Through Secondary Shares to Boost User Growth 🚀
Jumia, a leading African e-commerce company, is set to raise over $100 million by selling 20 million American depositary shares. Despite recent market volatility, this fundraising effort aims to capitalize on strong performance and drive growth. The funds will be used to enhance Jumia's logistics network, particularly in smaller cities, and invest in technology and marketing to attract more customers and vendors.
Key points:
- Share Offering: Jumia plans to raise around $100 million through secondary shares, although the final amount depends on the fluctuating share price.
- Growth Strategy: The new funds will boost supply chain capabilities, enhance logistics, and invest in technology to improve user acquisition and vendor engagement.
- Financial Performance: Jumia’s Q2 2024 report shows a cash position of $92.8 million, with plans to strengthen this further with the new capital.
- Market Challenges: Despite order growth, Jumia's GMV and revenue saw declines due to currency devaluation in key markets like Egypt and Nigeria.
- Profitability Focus: Jumia aims to reduce losses, with a 27% year-over-year decrease in loss before income tax from continuing operations, highlighting its commitment to profitability.
Jumia's CEO, Francis Dufay, emphasized the company's efforts to shift towards growth after significant cost management and efficiency improvements. The company aims to leverage the new funding to scale operations faster and achieve quicker break-even. 🚀💡
Highlights:
- Jumia’s share price has fluctuated recently, impacting potential funds raised.
- The company raised nearly $600 million from secondary shares between 2020 and 2021.
- New funds will support logistics expansion, technology investment, and vendor growth.
- Jumia's active customer base has remained around two million per quarter, with significant growth potential in African markets.
- Despite order increases, revenue and GMV declines are influenced by currency devaluation.
- Jumia's adjusted EBITDA loss decreased by 10%, showing improved financial management.
Stay tuned as Jumia takes bold steps to enhance its market position and drive substantial growth across the African e-commerce landscape! 🌍📦
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