Almost two weeks ago, TechCrunch reported that African e-commerce giant Jumia planned to issue 20 million American depositary shares (ADSs), potentially raising over $100 million, based on its stock price at the time of around $5.70.
The e-tailer has successfully executed an at-the-market offering of 20,227,736 American Depositary Shares (ADSs). Jumia priced its shares at a weighted average of $4.92 per American Depository Share (ADS), resulting in aggregate gross proceeds before commissions and expenses of approximately $99.6 million, according to TechCrunch, which reported the company is likely to upsize at this valuation.
Jumia’s CEO, Francis Dufay, announced that the capital injection will “further bolster our financial stability and enable us to accelerate our growth trajectory as we move towards profitability.”
As of Q2 2024, Jumia’s cash position totals $92.8 million, comprising $45.1 million in liquid funds and $47.7 million in time deposits and other financial assets. In contrast to the platform’s liquidity position of $120.6 million as of Fall 2023, and $101.5 million in Q1 2024, respectively?
Jumia concluded the second quarter of the year with a notable milestone: 2 million active quarterly customers, marking a 6.0% quarter-over-quarter increase compared to Q1 2024 and flat year-over-year growth between Q2 2023 and Q2 2024. Our customer base remains relatively small, around two million active shoppers per quarter, in contrast to the vast markets we operate in, encompassing over 600 million people. “So, we’re planning to scale up our client base significantly,” said Dufau in an interview with TechCrunch, prior to his company’s first-ever secondary share sale as CEO, which took place just this month.
From 2020 to 2021, as both private and public markets experienced an influx of capital, the e-commerce company successfully raised approximately $600 million through a secondary share offering.
