Axian Telecom, a pan-African telecommunications and digital infrastructure company, founded by Malagasy billionaire Hassanein Hiridjee and IFC, are backing Jumia with $50 million of fresh equity, giving the African e-commerce company additional capital as it works to improve efficiency and expand its marketplace and logistics operations.

IFC, the private-sector investment arm of the World Bank Group, is investing $25 million, while AXIAN, one of Jumia’s largest existing shareholders, and other investors are providing the remaining $25 million, according to regulatory filings.

The investors agreed to buy about 9.1 million new American Depositary Shares at $5.52 each. The transaction is expected to generate $50 million in gross proceeds and close in August, subject to customary conditions.

Jumia targets growth and efficiency

The funding arrives at an important stage for Jumia, which has spent years investing in its e-commerce platform while navigating Africa’s fragmented retail, payments and logistics markets. Jumia said the proceeds will support its next phase of growth, improve efficiency in its core African markets and strengthen its marketplace and logistics network.

The IFC investment also carries environmental, social, governance and anti-corruption requirements. Jumia agreed to comply with IFC performance standards, an environmental and social action plan, the organization’s exclusion list and anti-corruption guidelines.

AXIAN deepens its Jumia bet

AXIAN’s participation strengthens its existing relationship with Jumia. The group is already one of the company’s largest shareholders, while AXIAN CEO and founder Hassanein Hiridjee was elected to Jumia’s Supervisory Board earlier this year.

Headquartered in Mauritius, AXIAN Telecom operates across Africa and serves more than 44.3 million mobile subscribers, 14.8 million data users and 17.7 million mobile financial services customers.

Founded by Hiridjee, AXIAN Telecom has expanded across Tanzania, Madagascar, Togo, Uganda, the Democratic Republic of the Congo, Senegal, Réunion, Mayotte and Comoros through acquisitions and network investments since 2015.

The company recently secured $197 million in loan backing from the European Bank for Reconstruction and Development (EBRD) to support network expansion and digital infrastructure investments across Africa.

Jumia builds on its African e-commerce network

Founded in 2012 and listed on the New York Stock Exchange in 2019, Jumia operates across several African markets, connecting consumers with local and international sellers. The company provides online shopping, delivery and other digital services aimed at meeting everyday consumer needs across the continent.

For IFC, the Jumia investment adds to its role in supporting private-sector businesses in developing markets. Founded in 1956 and part of the World Bank Group, IFC operates in more than 100 countries and invests in businesses and projects intended to support economic development and reduce poverty.

The $50 million equity deal gives Jumia fresh capital while bringing AXIAN and IFC deeper into the company’s effort to build a more efficient African e-commerce business.