Africa Internet Group, parent company of Jumia, today announced a partnership with Orange, one of the leading telecommunication operators in Africa, to accelerate the growth of the company and seize development opportunities in Africa.
In line with the partnership, Orange will make a EUR75 million (286.5 billion UGX) equity investment in AIG. Orange will become a shareholder of AIG alongside existing shareholders MTN Group, Rocket Internet, Millicom, AXA and Goldman Sachs.
“We are thrilled by Orange’s equity investment and are eager to translate our strategic partnership into unique offers for our customers. Jumia and our other online consumer services give millions of African consumers an opportunity to access and transact with local companies in a new and very convenient way. With Orange’s support and expertise, combined with that of our existing long-standing shareholders, we will be able to further improve our service offerings and the customer experience while continuing to invest in our infrastructure,” said Sacha Poignonnec and Jeremy Hodara, founders and co-CEOs of Jumia and Africa Internet Group.
MTN Group Chief Digital Officer, Herman Singh, stated “MTN welcomes Orange as a shareholder. We are delighted that this partnership gives AIG greater support in territories where MTN does not operate. The investment also validates the proven business model and underscores MTN’s focus on e-commerce as a strategic pillar of our digital business.”
Jumia has built a strong presence in several key African markets where it will now be able to further improve its offering and customer experience thanks to this partnership.
Oliver Samwer, CEO of Rocket Internet said “the partnership will allow Jumia to further improve its position as the leading e-commerce platform in Africa, and we anticipate significant synergies with Orange in markets which have tremendous potential.”[related-posts]
Stéphane Richard, Chairman and CEO of Orange, stated: “We are particularly pleased to announce our entry into the capital of Africa Internet Group. With this strategic investment, Orange now has the capacity to play a leading role in the fast-growing e-commerce market in Africa. This acquisition is combined with the signature of several important partnership agreements that will create value for all parties. In particular, across the twelve countries where we have a common presence, this investment will enable us to significantly develop our ability to market products and services developed by Orange Middle East & Africa over the Internet. This operation, initiated by our corporate investment fund Orange Digital Ventures, is fully aligned with our strategic plan, Essentiels2020, particularly with regards to our ambition to reinvent customer service, develop the digital channels and services offered to customers as well as our ambition to develop our activities in Africa and the Middle East.”
According to Tech Crunch, most of this new money is likely to find its way to Jumia, AIG’s e-commerce firm that is present in 11 countries in Africa. Rocket Internet has dedicated electronic and fashion commerce sites in Europe, Southeast Asia, the Middle East and Latin America, but four-year-old Jumia covers a wider range: from fashion, to electronics, home appliances and other consumer items.