Baillie Gifford, the British investment firm that once held the largest institutional stake in African e-commerce giant Jumia, has fully exited its position after six years, capping off what’s likely a multimillion-dollar loss.
The move comes as Jumia’s stock, which soared to over $26 at its 2019 IPO, now trades at roughly $2.50 as of May 2025, reflecting the company’s ongoing financial struggles and growing competitive threats from global e-commerce players.
In a Schedule 13G/A filed with the U.S. Securities and Exchange Commission this month, Baillie Gifford confirmed it no longer owns any shares in Jumia Technologies AG.
The exit follows a series of stake reductions, starting with a 9.2% holding in January 2024, dropping to 7.4% by November 2024, and ultimately hitting zero in May 2025.
Jumia’s latest financials paint a mixed picture.
In Q1 2025, the company reported a 26% year-over-year drop in revenue to $36.3 million.
Yet its net loss narrowed significantly to $16.7 million, down from $40.7 million a year ago.
The company continues to aim for profitability by 2027 and has made several cost-cutting moves, scaling back marketing spend, exiting unprofitable markets like South Africa and Tunisia, and doubling down on cost-effective customer acquisition channels such as SEO and local radio.
Still, those efforts have not insulated Jumia from the rising tide of competition.
Chinese juggernauts Temu and Shein are aggressively expanding into African markets, luring customers with deep discounts, savvy digital campaigns, and minimal overhead.
Temu launched in Nigeria in November 2024, promising deliveries within two weeks and rolling out massive discounts.
Shein, meanwhile, is making inroads across South Africa, Kenya, and Ghana using influencer-driven marketing to tap into urban youth demographics.
Neither Temu nor Shein have established full-fledged physical operations on the continent, allowing them to operate lean and fast.
In an effort to stay competitive, Jumia has been bolstering its network of China-based merchants to expand its product offerings and reduce costs.
“We have significantly strengthened our relationships with international sellers, especially from China,” said CEO Francis Dufay during a recent call with investors.
“Our Chinese vendor base is scaling rapidly, and the supply pipeline is more robust than ever.”
While Jumia continues to restructure and adapt, the loss of Baillie Gifford, an early and prominent supporter, could send a cautionary signal to other institutional investors.
As global players tighten their grip on key African markets, Jumia now faces a tougher road ahead to prove its long-term value in an increasingly crowded e-commerce battlefield.
