French insurer Axa is to buy an 8% stake in online services business Africa Internet Group (AIG) for €75m, valuing the company at €937.5m. Assuming the transaction goes ahead, AIG would become Africa’s first technology company to reach “unicorn” status.
French insurer Axa (EPA:AXA) is to buy an 8% stake in Africa Internet Group (AIG) for €75m (US$85m), valuing the company at €937.5m (US$1.06bn).
Assuming the transaction goes ahead, Nigeria-based AIG would become Africa’s first technology company to reach “unicorn” status.
AIG’s existing shareholders include telecom operators MTN (MTN:JSE), Millicom (STO:MIC) and German start-up builder Rocket Internet (ETR:RKET).
Pending closure of the previous funding round, the investment is due to take place during Q1 2016.
Axa said its investment would “further strengthen the balance sheet and support AIG’s continued growth”. Online retailer Jumia, AIG’s main subsidiary, is present in 11 markets and grew its transaction volume by 265% during the first nine months of 2015 to reach €206m (US$232m).
Under the partnership agreement, Axa will become the exclusive provider of insurance products and services through Jumia and AIG’s other online and mobile platforms.
AIG’s portfolio also comprises Kaymu (shopping), Hellofood (food delivery), Jovago (travel), Lamudi (real estate listings), Everjobs (job listings) and Carmudi (car listings). The company was founded in 2012.
Axa described Africa as a “fast developing market for financial services and insurance products”, thanks to low penetration rates, expanding middle class, urbanization and young population.
According to Jumia and AIG founders and co-CEOs Sacha Poignonnec and Jeremy Hodara (pictured), “Internet is creating unparalleled opportunities for consumers and businesses in Africa to connect and do business in a new way….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.”
Denis Duverne, Deputy CEO of AXA, said the transaction was the next step in Axa’s long-term commitment to Africa, which he described as “home to some of the most dynamic and promising insurance markets in the world.”
