AXIAN Telecom Acquires 8% Stake in Jumia, Backing Its Turnaround Strategy

AXIAN Telecom has acquired an 8% stake in Jumia, the continent’s leading e-commerce platform. The investment was disclosed in a beneficial ownership filing with the U.S. Securities and Exchange Commission (SEC) on Monday.

AXIAN Telecom, a Pan-African telecom operator with strong interests in digital and financial inclusion, views the deal as an alignment of strategic visions — particularly in digital retail, logistics, and fintech.

Why AXIAN Invested in Jumia

AXIAN Telecom’s CEO, Hassanein Hiridjee, explained that Jumia’s capabilities in last-mile delivery, financial technology (via JumiaPay), and retail infrastructure positioned the company as a powerful enabler of economic and social inclusion on the continent.

“We believe in Jumia’s vision and strengths in digital retail and fintech. This is more than a financial investment — it’s a commitment to Africa’s digital economy,” he stated.

The acquisition comes despite Jumia’s reported 17% revenue drop to $36.5 million in Q1 2025. However, on a constant currency basis, the company recorded a 15% growth, reflecting a strong operational core obscured by currency devaluations in Nigeria and Egypt.

Jumia’s Restructuring and Market Focus

Under the leadership of CEO Francis Dufay, Jumia has undergone an aggressive restructuring. This includes exiting low-performing markets like South Africa and Tunisia to refocus operations on core markets — Nigeria, Kenya, Egypt, and Morocco.

“We made the difficult decision to close down operations in South Africa and Tunisia due to limited growth potential,” Dufay noted. “Our strategy is now focused on scalable, high-return markets.”

In addition, Jumia Food was shut down across seven African countries, including Nigeria, as part of this operational pivot.

AXIAN’s Role in Strengthening Jumia

The investment comes at a time when Jumia is working to reverse declining revenues and investor confidence. AXIAN’s involvement is expected to:

• Inject capital and confidence into Jumia’s recovery roadmap;
  
• Support Jumia’s logistics and fintech ecosystem with AXIAN’s digital infrastructure expertise;
  
• Bolster its competitiveness against emerging players like Temu and other Chinese-backed platforms;
  
• Signal a potential wave of strategic African investments in tech by Pan-African telecom operators.
  

AXIAN Telecom, a subsidiary of Axian Group, operates in 32 African and Indian Ocean territories. Its flagship brands — Yas Mobile and Mixx by Yas — focus on mobile and fintech solutions with impact footprints in Tanzania, Madagascar, and Togo.

Jumia’s Financial Snapshot: Struggles and Improvements

While the company posted a Q1’25 revenue of $36.3 million, down 26% YoY, it also reported:

• Operating loss of $18.7 million, up from $8.3 million in Q1’24;
  
• Adjusted EBITDA loss widened to $15.7 million (from $4.3 million);
  
• Pre-tax losses narrowed by 58% to $16.5 million, due to improved net finance results and a reduction in currency-related costs.
  

This financial turnaround, albeit slow, shows promising traction — especially with AXIAN now onboard as a strategic minority investor.