LAGOS, Aug 12 – Jumia Technologies has raised $50 million in new equity financing from the International Finance Corporation (IFC) and Axian Group to expand its logistics, digital payments and e-commerce infrastructure across Africa.
The transaction involves the issuance of more than nine million new American Depositary Shares at $5.52 each, giving the pan-African e-commerce company additional capital to expand into secondary and tertiary markets and support its path towards break-even by the end of the year.
The IFC and Axian are each investing $25 million in the transaction. The IFC’s participation brings backing from the World Bank Group, while Axian provides a strategic connection to one of Africa’s largest telecommunications networks.
Jumia plans to deploy the proceeds primarily toward strengthening its last-mile delivery network, upgrading automated warehouse systems and expanding the integration of JumiaPay, its digital payments platform.
The investment comes as Jumia seeks to address some of the structural challenges that continue to constrain e-commerce adoption across African markets. High distribution costs outside major urban centres, fragmented logistics networks and limited access to formal financial services have made it difficult for online retailers to reach consumers at scale.
Expanding digital payments could also help Jumia reach consumers who remain heavily reliant on cash transactions, while providing small and medium-sized businesses with broader access to online markets.
The funding arrives amid challenging operating conditions across several African economies, where currency volatility, elevated inflation and infrastructure constraints continue to affect consumer purchasing power and business costs. Additional investment in logistics and digital infrastructure is therefore expected to focus on improving the efficiency of Jumia’s existing operations while extending its reach into less-developed markets.
The participation of both a global development finance institution and an African telecommunications group also highlights the growing intersection between digital connectivity, financial services and e-commerce infrastructure on the continent.
For Jumia, the latest capital injection provides additional runway to pursue its expansion strategy while working towards profitability. The company’s ability to translate investment in logistics and payments into higher transaction volumes and improved operating efficiency will be central to determining whether its expansion can deliver sustainable growth.
