AXA Buys 8% Stake In Africa Internet Group For €75m
French insurance giant AXA announced today it is investing €75-million to take a 8% stake in Africa Internet Group (AIG), one of the continent’s largest e-commerce operations.
Jumia is AIG’s main subsidiary and operates in 11 African markets. Transactions grew 265% during the first nine months of 2015 to reach €206-million, AIG said.
AXA will become the exclusive insurance provider for AIG, which includes the Nigerian-based Jumia and other e-commerce operations in Africa. AXA joins MTN (the largest cellphone operator in Africa), Rocket Internet and Millicom as an AIG shareholder.
“[The] internet is creating unparalleled opportunities for consumers and businesses in Africa to connect and do business in a new way,” said Sacha Poignonnec and Jeremy Hodara, the founders and co-CEOs of Jumia and AIG.
“We expect Africa’s e-commerce and online businesses to develop rapidly as a result of the strong growth of the middle class coupled with the increasing mobile phone and internet penetration. “With Rocket Internet’s extensive background in online business models, MTN as leading mobile carrier with its broad African presence, and now the partnership with AXA in insurance products and services, we are in a great position to continue to innovate and connect businesses to the fast growing consumer demand.”
Last month French sporting goods retailer Decathlon launched an online store via Jumia in Cote d’Ivoire.
AXA’s deputy CEO Denis Duverne said: “Africa is home to some of the most dynamic and promising insurance markets in the world and our partnership with Africa Internet Group will enable us to accelerate materially our development by having access to their rich customer base and to their state-of-the-art e-commerce technology.
Contributor Toby Shapshak