Jumia stocks rise marginally as AXIAN Telecom takes 8% stake

African e-commerce player Jumia is charting a new strategic course, and investors are taking notice. The company’s shares saw a 2% bump on Wednesday, climbing to $3.31, after Mauritius-based AXIAN Telecom secured an 8% minority stake. This move signals a potential shift in Jumia’s trajectory, pushing its market capitalisation to $406.58 million.

The fresh investment from AXIAN, a pan-African telecom and digital services group, arrived early June, injecting a dose of renewed institutional confidence. This development comes on the heels of a significant investor shuffle: Baillie Gifford, once Jumia’s largest institutional backer since its 2019 IPO, fully exited its position between April and May, selling shares at $2.40 to $3.00.

Jumia’s recent Q1 2025 report painted a mixed financial picture. While revenue declined 26% year-over-year to $36.3 million, the company also reported a 21% increase in total orders and a 15% rise in active customers. However, its operating loss widened to $18.7 million from $8.3 million in the prior year’s quarter.

Despite the current financial pressure, Jumia is looking ahead with a revised full-year 2025 guidance, now anticipating 20-25% growth in physical goods orders, an increase from the earlier 15-20% projection. The company is targeting breakeven by Q4 2026 and aims for profitability in 2027.

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Under CEO Francis Dufay, Jumia has been actively restructuring. This includes exiting less profitable markets like South Africa and Tunisia and discontinuing non-core operations such as food delivery. To bolster its core e-commerce business, Jumia expanded its logistics network with new warehouses in Nigeria and Morocco in 2024.

The African e-commerce landscape is also heating up with the arrival of global competitors like Temu and Shein, known for their aggressive pricing. In response, Jumia is working to strengthen ties with international sellers, particularly from China, to broaden its product offerings and maintain competitive pricing.

For investors, AXIAN Telecom’s entry, replacing a long-term backer, could signify a turning point. While Jumia’s stock is likely to remain volatile as it navigates a challenging market and ongoing restructuring, the combination of new strategic support, a leaner operational focus, and improving order metrics suggests a company actively recalibrating for Africa’s digital economy.