Axian Telecom is reportedly in talks to strengthen its fintech division through the acquisition of African e-commerce giant Jumia Technologies, according to Bloomberg sources.
In an effort to fund this acquisition, Axian recently raised $600 million to refinance its debt. Although no final decision has been made, the company sees the potential acquisition as a strategic move to fuel growth across Africa.
Founded in Nigeria in 2012, Jumia had been dubbed the "Amazon of Africa" and currently holds a market value of approximately $500 million. The company has been publicly traded on the New York Stock Exchange since 2019, although sources suggest that Jumia may delist if the acquisition deal goes through.
Jumia CEO Francis Dufay acknowledged last month in an interview with the Financial Times that the company is working to rebuild investor confidence, as its share price has plummeted by over 90% from its peak six years ago, with a 60% drop just in the past year. The company is struggling against competition from Chinese rivals such as Temu. Dufay has outlined a goal for the company to break even by 2027, following significant cost-cutting measures and market exits.
Axian Telecom, a Mauritius-based African operator with a presence in markets like Tanzania, Madagascar, Comoros, Senegal, and Togo, has expanded its footprint through acquisitions and joint ventures. This latest acquisition of Jumia could be a key move in Axian's strategy to diversify and solidify its presence in the rapidly growing African fintech sector.
