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Jumia Sells $99.6M in Secondary Shares

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.”

Breaking: Jumia’s board appoints Francis Dufay as CEO | TechCabal

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.

Hillary Ondulohi

Hillary is a media creator with a background in mechanical engineering. He leverages his technical expertise to craft informative pieces on protechbro.com, making complex concepts accessible to a wider audience.

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