Axian Telecom takes 8% stake in Jumia amid eCommerce shake-up

Published: 2025-06-04 21:30:08 ET JMIA

Published on 06/04/2025 at 21:30

Axian Telecom has acquired an 8% stake in Nigeria-based Jumia Technologies for an undisclosed amount, signalling renewed investor interest in the struggling African eCommerce platform, the Madagascar-based telecommunications group announced in a press release.

The move follows a difficult period for Jumia, which has reported declining revenues, exited several markets, and lost major investor Baillie Gifford. During the COVID-19 lockdown period, Jumia briefly traded above $60 per share, but its stock has remained below $5 throughout 2025 following sustained poor performance and investor sell-offs.

Founded in 2012 and headquartered in Lagos, Nigeria, Jumia operates in over a dozen African countries. Often referred to as the 'Amazon of Africa', the company offers a wide range of consumer products including electronics, fashion, household goods and groceries, as well as logistics and digital payment services tailored to local markets. In April 2019, it became the first African technology start-up to list on the New York Stock Exchange, a notable development for the continent’s digital economy.

In its first quarter 2025 earnings report, Jumia posted a 26% year-on-year revenue decline to $36.3mn, while operating losses more than doubled to $18.7mn. The company has faced growing pressure from Chinese eCommerce firms such as Temu and Shein, which have entered African markets with low-cost products and streamlined logistics networks.

Axian Telecom operates in nine African countries and serves more than 40mn customers. In the statement announcing the transaction, the company said the investment aligns with its broader strategy to accelerate Africa’s digital transformation and support technology-driven growth.