Axian Telecom Plans to Acquire Jumia Technologies
Axian Telecom plans to strengthen its fintech division by acquiring Jumia Technologies.
Axian Telecom announced its plan to acquire Jumia Technologies. To finance this acquisition, the company recently raised $600 million by restructuring its debt. Although no final decision has been made yet, the company sees this potential acquisition as a strategic move to support its growth across Africa.
Headquartered in Mauritius, Axian Telecom operates in markets such as Tanzania, Madagascar, Comoros, Senegal, and Togo. The potential acquisition of Jumia Technologies aligns with the company’s strategy to expand and diversify its presence in the rapidly growing African fintech sector through acquisitions and joint ventures.
Jumia to Be Delisted
Known as the “Amazon of Africa,” Jumia has a market capitalization of around $500 million. The company, which has been publicly traded on the New York Stock Exchange since 2019, may be delisted following the acquisition.
In an interview, Jumia CEO Francis Dufay stated that the company is working to regain investor confidence. The company’s share price has fallen by more than 90% since its peak six years ago and by 60% in the past year alone.
The company is struggling to compete with Chinese rivals like Temu. Dufay noted that following cost-cutting measures and decisions to exit certain markets, Jumia aims to reach break-even by 2027.
Jumia Opens Largest Integrated Warehouse in Egypt
Meanwhile, Jumia has opened its largest integrated warehouse in Egypt, located on the Suez Road in Cairo. Covering an area of over 27,000 square meters, the facility serves as an integrated logistics hub aimed at improving storage and distribution efficiency, particularly in underserved regions like Upper Egypt.
Through its ecosystem, Jumia is expected to generate thousands of direct and indirect jobs in the coming years. This latest investment reflects Jumia’s ongoing pursuit of growth and innovation in e-commerce and strengthens its mission to enhance accessibility, affordability, and economic inclusion across Africa.