About five months after it announced its partnership with Africa Internet Group, AIG, now referred to as Jumia, AXA said it has finalised the acquisition of its 8% stake in the company.
In its recently released half year 2016 result, the company said it completed the acquisition on the 1st of March 2016.
However, Jumia has been facing a challenges in Nigeria, due to the country’s fall in government revenue that shrank its dollar (USD) Forex reserves. This and other intrinsic problems necessitated the restructuring of AIG into Jumia.
Rocket Internet, the parent company of Jumia is expected to release its half year result which will indicate the health of Jumia going forward.
In its Q1 result, Rocket Internet said Jumia recorded a net loss of USD125 million. The release of the company’s H1 result will further show if AXA’s acquisition is delivering value. However, for a company with EUR3.2 billion in H1 2016 net income, the EUR75 million bet on Jumia is a drop in the ocean.