Grace Ashiru
Baillie Gifford, once the largest institutional investor in Jumia, has fully exited its position in the African e-commerce company—likely taking significant losses as Jumia’s stock price plunged from over $26 at its 2019 IPO to approximately $2.50 by May 2025. This complete divestment highlights the mounting challenges Jumia faces as competition from global e-commerce giants intensifies.
In May 2025, Baillie Gifford filed a Schedule 13G/A with the U.S. Securities and Exchange Commission, confirming that it no longer holds any shares in Jumia Technologies AG. This move follows a gradual sell-off of its stake, which dropped from 9.2% in January 2024 to 7.4% in November 2024, eventually reaching 0% by May 2025.
Jumia’s financial results for the first quarter of 2025 revealed a 26% year-over-year decline in revenue, falling to $36.3 million. Despite this drop, the company managed to narrow its net loss to $16.7 million, a significant improvement from the $40.7 million loss reported a year earlier. Jumia reaffirmed its target of reaching profitability by 2027. Measures to reduce losses have included slashing marketing expenses, exiting unprofitable markets such as South Africa and Tunisia, and shifting focus to cost-effective marketing channels like SEO and local radio.
However, Jumia is grappling with increasing competition from international e-commerce players, particularly Temu and Shein, which are making aggressive inroads into key African markets. Temu entered Nigeria in November 2024 with deep discounts and delivery promises of under two weeks. Meanwhile, Shein is expanding across urban hubs in South Africa, Kenya, and Ghana using influencer-driven campaigns. Both companies operate without fully established physical infrastructures on the continent, allowing them to keep overhead costs low.
In a strategic response, Jumia is increasing the number of China-based merchants on its platform to expand its product range and maintain competitive pricing. “We have significantly strengthened our relationships with international sellers, especially from China,” said Jumia CEO Francis Dufay during an investor call. “Our Chinese vendor base is scaling rapidly, and the supply pipeline is more robust than ever.”
Despite these strategic moves, the departure of Baillie Gifford could hinder Jumia’s ability to attract new institutional investors, as the company continues to navigate a tough road to profitability amid mounting global competition.
