Jumia Technologies AG (NYSE:JMIA) saw its stock rise by 6% following Bloomberg’s report that Mauritius-based Axian Telecom is showing interest in acquiring the African e-commerce leader.
Sources familiar with the matter told Bloomberg that Axian Telecom recently secured $600 million to refinance its existing debt and possibly finance a takeover of Jumia. The telecom company, which operates mainly across Africa, aims to broaden its footprint on the continent through this potential acquisition. Jumia’s current market capitalization stands near $500 million.
If the deal goes through, Jumia could be delisted from the New York Stock Exchange, where it has been traded since its 2019 initial public offering. However, insiders warn that discussions are still in progress and no final agreement is guaranteed.
Founded in Nigeria in 2012, Jumia has become Africa’s top e-commerce platform. Combining forces with Axian Telecom could unlock new growth opportunities and operational synergies as both companies strive to expand their influence in African markets.
This development occurs as Jumia continues to tackle the challenges of operating in Africa’s e-commerce sector, where logistics and payment infrastructure remain significant obstacles despite a growing digital economy on the continent.