Jumia Technologies AG Draws Takeover Interest from Axian Telecom

Jumia Technologies AG, Africa's largest e-commerce company, has drawn takeover interest from Mauritius-based telecom firm Axian. Axian raised $600 million to refinance debt and fund a potential takeover. Jumia's market cap is $543 million, and a deal would help both firms expand across Africa. Shares of Jumia surged nearly 20% last week, but AI stocks may offer greater upside potential and lower downside risk.

Jumia Technologies AG, Africa's largest e-commerce company, has drawn takeover interest from Mauritius-based telecom firm Axian. The potential acquisition comes as Jumia's market cap stands at $543 million, and shares of Jumia surged nearly 20% last week following reports of the interest.

Axian, which operates in nine African markets through its Yas mobile and Mixx by Yas fintech brands, has recently raised $600 million to refinance its debt and fund a potential acquisition of Jumia. The $600 million bond issuance in June was oversubscribed, with senior notes due in 2030 carrying a 7.25% coupon [1].

The potential deal represents an escalation of Axian's existing relationship with Jumia. In May, Axian disclosed an 8% stake in Jumia, which has since grown to over 9%. Axian's CEO, Hassan Jaber, stated that his company was supportive of Jumia's strategic vision and viewed its logistics and fintech capabilities as drivers of financial inclusion [1].

A combination of Axian's telecommunications infrastructure and Jumia's e-commerce network could create synergies, potentially driving growth across Africa. Axian operates in markets such as Tanzania, Madagascar, Comoros, Senegal, and Togo, while Jumia operates across 11 African countries including Nigeria, Kenya, Morocco, Egypt, Tunisia, South Africa, Algeria, Senegal, Ghana, Ivory Coast, and Uganda [3].

Jumia's appeal as a takeover target comes amid mounting financial pressures. The company reported a 26% revenue decline to $36.3 million in the first quarter, with operating losses more than doubling to $18.7 million. The company burned through $23 million in cash during the quarter, leaving approximately $111 million in liquidity [1].

The potential takeover interest follows the exit of Baillie Gifford, once Jumia's largest institutional investor, which sold its entire 18 million share position after a six-year investment. Jumia also faces intensified competition from Chinese platforms Temu and Shein, which have entered key African markets with aggressive pricing [1].

While a final decision is pending, Axian views this potential acquisition as a strategic opportunity to drive growth across Africa. The company aims to transform Jumia from simply an e-commerce platform into a comprehensive digital payments hub, leveraging its fintech ambitions [3].

References:
[1] https://www.perplexity.ai/discover/top/axian-considers-jumia-takeover-F8V9BQggTPusS_uwPLnggg
[2] https://finance.yahoo.com/news/jumia-technologies-ag-jmia-draws-143539479.html
[3] https://techweez.com/2025/07/02/axian-jumia-acquistion/