African e-commerce company Jumia, has secured $50 million in fresh equity from investors led by the World Bank’s International Finance Corporation, giving the loss-making retailer additional financial firepower as it pushes towards profitability.

IFC is investing $25 million, half of the total fundraising, while Axian, one of Jumia’s largest existing shareholders, and other investors are providing the remaining $25 million, according to regulatory filings released on Wednesday.

Under the transaction, investors agreed to buy about 9.1 million new American Depositary Shares at $5.52 each. The deal is expected to close in the second half of August, subject to customary conditions.

The fundraising comes at a pivotal point for Jumia, which has spent years burning cash while attempting to build an e-commerce business across some of Africa’s most difficult retail and logistics markets. At the end of June, Jumia’s liquidity position stood at $48.3 million, down from $62.6 million at the end of March. The company used $11.8 million in operating cash during the second quarter.

That means the $50 million equity injection is larger than Jumia’s entire liquidity position at the end of the quarter.

Jumia said it would use the proceeds to support its next phase of growth, improve efficiency in its core African markets and strengthen its marketplace and logistics network. The IFC investment also comes with environmental, social, governance and anti-corruption requirements.

The investment arrives alongside signs that Jumia’s years-long restructuring is beginning to improve its financial performance. Revenue increased 14% to $52 million in the second quarter from $45.6 million a year earlier. Gross merchandise value rose 20% to $216.3 million. After adjusting for markets Jumia has exited, GMV increased 23%.

Gross profit climbed 28% to $30.7 million. More importantly for a company that has struggled for years to make its African e-commerce model profitable, losses continued to narrow. Adjusted EBITDA loss fell 36% to $8.7 million from $13.6 million a year earlier, while operating losses dropped 25% to $12.4 million.

The platform is also attracting more shoppers. Quarterly active customers increased to 2.6 million, while physical goods orders reached 6.3 million. Adjusted for Jumia’s exits from some markets, orders grew 28% year-on-year.

Nigeria, one of Jumia’s biggest markets, was among the strongest performers. GMV increased 36% and orders rose 34% during the quarter.

After shutting operations in several countries, cutting costs and narrowing its focus, the company now says it expects to reach adjusted EBITDA breakeven and positive cash flow in the fourth quarter of 2026, before achieving full-year profitability and positive cash flow in 2027.

Jumia expects full-year 2026 GMV growth of between 27% and 32%, adjusted for changes to its operating footprint, and an adjusted EBITDA loss of between $25 million and $30 million.