AXIAN Telecom, the pan-African telecommunications service provider, has acquired a minority stake in e-commerce platform Jumia.
The company announced on Monday that it had filed a beneficial ownership report on Schedule 13D with the U.S. Securities and Exchange Commission (SEC), declaring its aggregate beneficial ownership of 8.0% in Jumia.
“AXIAN Telecom’s management is supportive of Jumia’s strategic vision, and we look forward to contributing positively to its growth and success where we can. ” Hassan Jaber, CEO of AXIAN Telecom, said.
He added ”We believe Jumia’s achievements in digital retail infrastructure and fintech through JumiaPay, as well as its logistics strengths, place it in a position to promote financial and economic inclusion for the communities which it serves. This unique position makes Jumia a very attractive investment for AXIAN Telecom, and one which is aligned with our core values,” he added.
Once hailed as the “Amazon of Africa,” Jumia made headlines as the first African tech company to list on the NYSE back in 2019. However, the platform has struggled to maintain investor confidence amid mounting losses, intense competition, and logistical hurdles in key markets such as Nigeria, Kenya, Egypt, and Morocco.
A Shift in Strategy
Over the past few years, the e-commerce company has undergone significant leadership changes, including the exit of its co-CEOs and the appointment of Francis Dufay as acting CEO in 2022, who was later confirmed as the permanent CEO. Under Dufay’s leadership, the company has embarked on a restructuring strategy aimed at streamlining operations, cutting costs, and focusing on profitability.
The company scaled back its presence in underperforming markets, which saw it shut down its operations in both Tunisia and South Africa – two markets that the CEO described as contributing “negligibly” to the overall business.
“Since assuming the role of CEO, I have focused on initiatives aimed at strengthening our business and placing us on a path to profitability,” Dufay said during the announcement of the market exits. “After a thorough analysis, we made the difficult decision to close down our operations in South Africa and Tunisia. Competitive and macroeconomic conditions in both markets have limited their growth potential, and their contribution to our overall business has not aligned with expectations.”
Today, Jumia is concentrating its efforts in core markets with higher growth prospects, including Nigeria, Kenya, Egypt, and Morocco. The company is also doubling down on high-potential verticals such as everyday essentials and digital financial services via its JumiaPay platform.
While appearing on The TechTrends Podcast to discuss the company’s journey and state of e-commerce in Africa, Jumia’s East African Regional CEO Vinod Goel, also revealed that the company is gearing up for major innovations, including increasing product offerings from original and international brands (targeting 60%) and opening its logistics infrastructure to third parties.
“We’re focusing on innovations that not only improve the customer experience but also create value for other businesses across the ecosystem,” Goel noted during the interview.
The investment from AXIAN Telecom, known for its expansive footprint in telecommunications, digital infrastructure, and financial services across Africa, represents a vote of confidence in Jumia’s turnaround strategy and long-term potential.
AXIAN Telecom said in a statement seen by TechTrends Media that it remains committed to supporting the development of Africa’s digital economy, including through investments in companies like Jumia. Such investments it says, complement its core mission of delivering accessible, innovative, and inclusive digital services across the continent, mainly via its Yas (mobile) and Mixx by Yas (fintech) brands.
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