British investment firm Baillie Gifford has officially exited its stake in African e-commerce giant Jumia, marking the end of a six-year relationship that once symbolised Western confidence in Africa’s digital economy. This strategic divestment, disclosed in a May 2025 SEC filing, underscores growing investor caution as Jumia struggles with losses, shrinking revenue, and a narrowing market presence.
Baillie Gifford’s Exit: A Turning Point for Jumia
Baillie Gifford first invested in Jumia in 2019, shortly after the company’s IPO, acquiring nearly 18 million shares for an 11.45% stake. At the time, Jumia was touted as the “Amazon of Africa,” and its stock price peaked above $26. As of June 2025, the stock trades at a fraction of that—around $2.50.
The exit of Jumia’s largest institutional investor signals a major vote of no confidence and puts further pressure on the already embattled e-commerce firm.
Institutional Pullback Reflects Broader Market Sentiment
Baillie Gifford’s departure follows a trend of institutional investors reducing or eliminating their exposure to Jumia. Investment giants like Goldman Sachs, JPMorgan, Morgan Stanley, and Citi have all reduced their holdings below the 5% threshold over the past few years.
Other firms, such as BlackRock and Old Mutual, have also scaled back on Africa-focused tech investments. This institutional retreat raises questions about long-term investor appetite for African e-commerce platforms operating under challenging macroeconomic conditions.
Jumia’s “Survival-First” Strategy Amid Financial Strain
In response to declining investor confidence, Jumia has adopted an aggressive cost-cutting strategy, which it labels a “survival-first” approach. In 2024, the company reduced headcount, marketing spend, and fulfillment costs, resulting in a 10% decrease in operating losses.
However, these gains were short-lived. In Q1 2025, Jumia posted an $18.7 million operating loss, driven by currency devaluation in key markets like Nigeria and Egypt. The platform’s Q1 2025 revenue also fell by 26%, with full-year 2024 revenue down 10%.
Jumia’s Shrinking Footprint and Growth Challenges
To conserve cash, Jumia exited South Africa and Tunisia and focused on fewer, more sustainable markets. While physical goods orders rose 21%, the growth came from a smaller base and at reduced average basket sizes. The lack of a new growth engine raises concerns about the company’s ability to scale or reach profitability in the near term.
What’s Next for Jumia?
With Baillie Gifford gone and revenue shrinking, Jumia’s future is uncertain. The company remains committed to e-commerce in Africa, but without strong institutional backing or a clear growth trajectory, it risks becoming a structurally smaller and persistently unprofitable player in the global e-commerce space. Baillie Gifford’s complete divestment from Jumia underscores a critical inflection point for African e-commerce. As the company retreats to a more conservative, survival-focused model, its long-term prospects hinge on whether it can reverse revenue decline and regain investor trust. For now, Jumia’s future looks leaner, more localised, and increasingly uncertain.
