In just a very short period of ten days, Jumia ($JMIA) has closed the sales of 20 million ordinary shares that were released to the public.
According to a document that TechCabal had access to, the gross proceeds from the sale amounted to $99.6 million. The file suggested an average share price of about $4.95 per share, slightly up compared to Friday’s trading price of $4.90. Earlier this week, TechCabal reported that liquor and wine maker Pernod Ricard bought 1.27 million ordinary shares valued at around $6 million.
Raising this $99 million has significantly improved Jumia’s cash position.
Jumia is yet to respond to this information.
The e-commerce giant will use the funding to finance their activities to increase the customer base, expand their supplier network and logistics. It will also invest in improving the technology that supports its vendors and marketing vertical—a value-added service that it has been extending to its customers since 2021.
Despite missing its revenue targets in Q2 2024, investors remain optimistic in Jumia’s ability to crack Africa’s e-commerce market.
