Jumia seeks to raise $100M via share sales as its stock drops to $4.90. CEO Dufay aims to expand logistics and invest in technology to grow the 2M customer base and improve liquidity. The e-commerce platform faces currency challenges in key markets.
African e-commerce giant Jumia is selling 20M American depositary shares, aiming to raise $100M. This follows a significant stock rally but also a drop to $4.90 per share. CEO Francis Dufay says the funds will expand logistics and enhance technology.
Despite raising almost $600M in 2020-2021, Jumia’s stock drop reflects shareholder concerns over dilution and market volatility. Dufay highlights improved cost management and efficiency, stressing the need for further growth and investment to scale faster.
Jumia’s liquidity has decreased to $92.8M from $120.6M in Q4 2023. The funds will boost customer acquisition and vendor expansion. Despite a 7% order increase, GMV and revenue fell by 5% and 17%, respectively, due to currency devaluation in Egypt and Nigeria.
Jumia's adjusted EBITDA loss narrowed by 10%, driven by cost-saving efforts. The focus now is on loss before income tax due to currency volatility. Dufay compared this approach to Mercado Libre’s strategy, emphasizing a holistic view in markets with fluctuating currencies.
Will Jumia's fundraising efforts be enough to spur growth?
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