Jumia's Stock Surges on Axian Takeover Buzz: What Investors Need to Know

Jumia Technologies AG (JMIA) stock surged 16.5% after Axian Telecom raised $600 million in financing, reportedly to refinance debt and position itself for a potential acquisition of Jumia. This potential merger could create a powerful synergy, combining Axian's telecommunications infrastructure with Jumia's established e-commerce network. Representatives for both companies declined to comment on the speculation. News of a potential takeover by Axian Telecom would likely cause Jumia's stock to rise due to acquisition premium, making the stock more attractive to investors.

Jumia Technologies AG (JMIA) stock surged 16.5% after Axian Telecom raised $600 million in financing, reportedly to refinance debt and position itself for a potential acquisition of Jumia. This potential merger could create a powerful synergy, combining Axian's telecommunications infrastructure with Jumia's established e-commerce network. Representatives for both companies declined to comment on the speculation. News of a potential takeover by Axian Telecom would likely cause Jumia's stock to rise due to acquisition premium, making the stock more attractive to investors.

According to a Bloomberg report, Axian Telecom recently secured $600 million in funding, earmarked in part to support a potential purchase of Jumia [1]. Jumia Technologies stock traded over 7% higher on Tuesday morning after the report [1]. The deal, if completed, could result in Jumia being taken private [1].

Jumia, listed on the New York Stock Exchange, currently has a market valuation of nearly $500 million. The company's share price has dropped notably in the years that followed its 2019 initial public offering, but it has gained over 12% year-to-date and has lost over 39% in the past 12 months [1].

The potential acquisition comes at a time when Jumia is trying to streamline operations and improve margins. Recently, the company moved senior leadership from Dubai to its core African offices. Additionally, Jumia has seen a growing number of Chinese merchants turn to it as trade barriers with the U.S. prompt exporters to explore alternative markets [1].

In 2024, Jumia posted $167.5 million in revenue and served 5.4 million customers across the continent. However, in the first quarter (Q1) of 2025, Jumia Technologies’ revenue plunged 26% year-on-year (YoY) to $36.3 million, missing the analysts' consensus estimate of $39.24 million [1].

Following the announcement, retail sentiment shifted into the ‘bullish’ territory (73/100) from the ‘neutral’ zone amid ‘high’ levels of message volume [1].

References:

[1] https://stocktwits.com/news-articles/markets/equity/jumia-shares-jump-as-axian-mulls-buyout-of-e-commerce-giant/chFW1XRRRC8
[2] https://ih.advfn.com/market-news/article/11941/jumia-shares-jump-on-bloomberg-report-of-takeover-interest-from-axian-telecom