The French telecommunications operator announced an equity investment in Africa Internet Group (AIG) for $ 75 million. Orange joined Axa, Goldman Sachs and existing investors AIG, MTN Group, Millicom and Rocket Internet.
Orange enters the capital of Africa Internet Group (AIG). The operator puts 75 million euros in the group that owns the e-commerce site jumia African but also other internet sites on the continent as Kaymu, Hellofood, Jovago, Lamudi, Everjobs or Carmudi, a-t- he said in a statement on 5 April.
A new investment comes two months after the announcement of the acquisition of a French insurer AXA for EUR 75 million , and a month after MTN and Rocket Internet, two of the three shareholders of AIG, joined by Goldman Sachs , have brought additional EUR 225 million to finance the development of AIG.
“With this strategic investment, Orange is now capacity to play a leading role in the exponential growth of e-commerce in Africa. This operation, initiated by our investment funds corporate Orange Digital Ventures, is fully in line with our strategic plan, “said Stéphane Richard, CEO of Orange.
Founded in 2012, AIG is now valued around one billion euros.
Its financial results are not known. Only those jumia, the main entity of the group are per Rocket Internet: in the first nine months of 2015, jumia has generated 106.5 million euros in revenues (to € 206 million in goods sold) to 2.2 million transactions (a figure up 223.1%).
Present in 11 African countries including Nigeria, jumia experienced over the same period a negative EBITDA of 65.4 million euros. These ongoing losses require very regular fundraisers.