Jumia, a leading African e-commerce company, completed the sale of $99.6 million in secondary shares, marking a significant financial milestone
Almost two weeks ago, TechCrunch reported that Jumia, an African e-commerce giant, intended to sell 20 million American depositary shares (ADSs) and raise over $100 million. At the time, Jumia’s share price was approximately $5.70.
The e-tailer has now concluded the at-the-market transaction offering of 20,227,736 ADSs.
Jumia’s aggregate gross proceeds before commissions and offering expenses were $99.6 million, as the shares were sold at an average price of $4.92 per ADS.
According to TechCrunch, Jumia is expected to be sold at that price.
In a statement, Jumia CEO Francis Dufay stated that the capital will “further strengthen our balance sheet and help us accelerate our growth trajectory as we progress along our path to profitability.”
Jumia’s most recent financial report, published in Q2 2024, indicates that its cash position is presently $92.8 million, consisting of $45.1 million in cash and cash equivalents and $47.7 million in term deposits and other financial assets.
This contrasts the platform’s liquidity position of $120.6 million in Q4 2023 and $101.5 million in Q1 2024.
Jumia’s second quarter we concluded with 2 million active quarterly customers, a 6.0% increase from Q1 2024 and a flat year-over-year development between Q2 2023 and Q2 2024.
“Our customer base is still relatively small, with approximately two million active consumers per quarter, even cooperating with a population exceeding 600 million.”
Dufay informed TechCrunch that he could accomplish much more with the customer base before conducting his first secondary share sale as CEO earlier this month.
The e-tailer raised nearly $600 million by selling secondary shares between 2020 and 221, when priate and public markets were flush with capital.
