Insurance firm AXA paid €75m ($83m) today for an 8% stake in Africa Internet Group (AIG), the collection of Africa-based e-commerce assets overseen by holding company Rocket Internet.
AIG incorporates several Africa-based services from Rocket Internet portfolio companies such as ride hailing service Easy Taxi, classified listings sites Carmudi, Vendito and Lamudi, jobs listing platform Everjobs, food delivery service Hellofood, hotel booking platform Jovago and e-commerce platforms Kaymu and Zando
AXA is making the investment as part of a strategic alliance with Jumia, the Nigeria-based e-commerce platform founded in 2012 which is now present in 11 African countries, and which is positioned as AIG’s largest business.
The deal will make AXA the exclusive insurance provider across Jumia and the rest of AIG’s platforms. The firm will also come up with customised insurance products for the AIG portfolio.
AXA joins existing AIG shareholders Rocket Internet and telecommunications companies MTN and Millicom. AIG provided $135m of a $150m series C round for Jumia in late 2014, with the other shareholders supplying the rest.
Sacha Poignonnec and Jeremy Hodara, co-founders and CEOs of Jumia and AIG, said: “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.”