E-commerce giant, Jumia Technologies, is attracting takeover interest from Mauritius-based Axian Telecom, as the firm battles a sharp decline in revenue, narrowing liquidity, and intensifying competition across Africa’s fast-paced digital economy.
- •Shares in Jumia rose over 6% on Tuesday after Bloomberg reported that Axian Telecom is exploring a potential acquisition of the NYSE-listed company.
- •This is after Axian sought to raise US$600 million through a bond issuance, which will be structured by J.P. Morgan, Standard Bank, and Standard Chartered.
- •While talks are said to be at a preliminary stage, the development builds on Axian’s existing stake, which has grown to more than 9% in recent months.
Axian’s interest comes as Jumia’s financial fundamentals continue to deteriorate. In the first quarter of 2025, the company’s revenue slid 26% year-over-year to US$36.3 million, and gross profit fell 36% to US$19.9 million.
Although total orders rose 21%, its strongest performance in two years, overall merchandise volume dropped 11% as high-margin corporate sales weakened and currency pressures weighed on demand in several markets.
Jumia has tried to rein in costs by maintaining flat fulfillment expenses and trimming advertising spending. The company is also retreating from its weaker markets, having fled South Africa and Tunisia in late 2024.
Axian, which operates telecom and fintech services across nine African markets, sees Jumia as a strategic node, particularly for integrating payments and logistics capabilities with its mobile infrastructure.
Traditional retail remains dominant across many African regions, bolstered by cash transactions and long-established trust in local vendors. Recently, Jumia has launched a new logistics service for third-party businesses and reported an uptick in returning customers. However, these efforts are yet to translate into a clear turnaround.
Meanwhile, pressure from global and regional rivals is growing as Chinese players like Temu and Shein aggressively expand into African markets with their ultra-low pricing and elimination of intermediaries.
Jumia also faces competition from entrenched domestic players such as Nigeria’s Konga, Kenya’s Kilimall, and South Africa’s Takealot. Jumia’s valuation has fallen from lofty early expectations.
Since its 2019 IPO, the firm has shed more than 90% of its peak market capitalization and is currently valued at around $500 million.
With long-time backers like Baillie Gifford, Rocket Internet, and MTN Group having exited their stakes, the company faces a new era that will not be defined by expansion, but by survival in the name of acquisition.
