Jumia, has successfully concluded its sale of 20 million ordinary shares in a secondary transaction, thereby securing a funding of $99.6 million – an announcement that came just ten days after the initial sales disclosure.
According to a securities filing, the gross proceeds from this sale reached the targeted $99.6 million, with the average share price approximating to $4.95 per share, slightly above the Friday trading price of $4.90. As reported by TechCabal on Monday, liquor and wine maker Pernod Ricard purchased 1.27 million ordinary shares worth approximately $6 million.
A Wall Street analyst projected a full-year loss of $65 million for Jumia in 2024, and as of Q2 2024, the company’s cash position was noted at $92.8 million. With the successful raise of $99 million, Jumia is set to bolster its financial reserves significantly.
Reportedly, the funds from the sale will be deployed to fuel Jumia’s ongoing customer acquisition efforts and expand its supplier base and logistical network. Additionally, investments will be made to enhance the technology that supports vendors and marketing vertical, a service which has been extended to customers since 2021.
Despite missing revenue targets in Q2 2024, investors remain optimistic about Jumia’s potential to carve a successful path in Africa’s e-commerce industry. Jumia holds a steadfast position in need of continued backing and belief.
Following this successful sale of ordinary shares, Jumia’s strengthened financial position is expected to provide vital support for the company’s growth initiatives and its efforts to further establish itself in the competitive e-commerce landscape.
Jumia did not provide immediate comments on the proceedings. The company’s strategic utilization of these funds will be closely observed as it endeavors to fortify its market presence and navigate the challenging yet promising African e-commerce terrain.
