The news:
- Baillie Gifford has sold its entire 18 million-share stake in Jumia, reducing its ownership from 7.4% in November 2024 to 0% by May 2025.
- The investment firm likely incurred significant losses, with Jumia’s share price dropping from over $26 in 2019 to around $2.5 at the time of sale.
- Jumia’s Q1 2025 report showed a 26% year-on-year revenue decline, despite efforts to cut costs and achieve profitability by 2027.
Baillie Gifford, once Jumia’s largest institutional investor, has fully divested its stake in the African e-commerce company, likely incurring significant losses as Jumia’s stock plummeted from over $26 at its 2019 IPO to around $2.5 in May 2025. This exit underscores the mounting challenges Jumia faces amid intensifying competition from global e-commerce giants.
In May 2025, Baillie Gifford filed a Schedule 13G/A with the U.S. Securities and Exchange Commission, indicating it no longer holds any shares in Jumia Technologies AG. This complete divestment follows a gradual reduction in its holdings, from 9.2% in January 2024 to 7.4% in November 2024, before reaching 0% in May 2025.
Jumia’s Q1 2025 financial results revealed a 26% decline in revenue year-on-year, dropping to $36.3 million. Despite this, the company reported a reduced net loss of $16.7 million, down from $40.7 million a year earlier, and reiterated its goal of achieving profitability by 2027. Strategies to reduce losses included cutting marketing expenses, exiting unprofitable markets like South Africa and Tunisia, and focusing on cost-effective channels such as SEO and local radio.
However, Jumia faces intensified competition from global e-commerce platforms, notably Temu and Shein, which have entered key African markets with aggressive pricing and marketing strategies.
Temu launched in Nigeria in November 2024, offering deep discounts and promises of delivery within two weeks, while Shein is expanding in major urban centres across South Africa, Kenya, and Ghana through influencer-driven marketing. Neither retailer has established full physical operations on the continent, allowing them to operate with lower overhead costs.
In response, Jumia is ramping up the number of China-based merchants on its platform to offer a wider range of products at competitive prices.
“We have significantly strengthened our relationships with international sellers, especially from China,” said Francis Dufay, Jumia’s CEO, on a call with investors. “Our Chinese vendor base is scaling rapidly, and the supply pipeline is more robust than ever.”
Despite these efforts, the loss of Baillie Gifford’s support may impact Jumia’s ability to attract future institutional investment, as the company navigates a challenging path toward profitability amid fierce global competition.
