Orange Makes $85M Nigerian eCommerce Play

French telecom giant Orange is making a play in the African retail industry with a $85 million investment in Nigerian eCommerce company Africa Internet Group (AIG).

Orange’s investment in AIG opens new channels for the company to expand its market in 26 African countries through the tech companies that AIG owns, including food delivery app HelloFood, online retailer Jumia, travel booking company Jovago and real estate marketplace Lamudi, Reuters reported.

“With this strategic investment, Orange now has the capacity to play a leading role in the fast-growing eCommerce market in Africa,” Stéphane Richard, chairman and CEO of Orange, said in a joint statement with AIG. “This investment will enable us to significantly develop our ability to market products and services developed by Orange Middle East and Africa over the Internet,” he added.

Orange joins a host of heavyweight companies, such as Goldman Sachs, telecom giant MTN and Rocket Internet, who have previously funded AIG and now are shareholders.

“We are thrilled by Orange’s equity investment and are eager to translate our strategic partnership into unique offers for our customers,” said AIG Founders and Co-CEOs Sacha Poignonnec and Jeremy Hodara.

AIG’s fast-paced growth in the African continent has continually captured the interest of international companies and fueled its need for cash to expand its presence. Just last month, the company secured $245 million in a funding round.

In February this year, AIG got another big push from Rocket Internet with a $83 million investment to power its 10 eCommerce ventures — all of which are counted among the top in Africa. In return, AIG offered an 8 percent equity in the company with access to its network.

Orange’s investment in AIG comes at a time when a young and smartphone-savvy consumer base in Africa is developing a voracious appetite for faster delivery and convenience. The African eCommerce industry is expected to hit a $1 trillion market cap in the next four years, according to reports.