Investor confidence in Jumia has taken a hit following the complete exit of its largest shareholder, Baillie Gifford, signaling deep skepticism about the e-commerce giant’s turnaround prospects.
The exit follows mounting losses, shrinking operations, and uncertain growth, leaving Jumia under pressure to prove that its payments and logistics arms can drive a sustainable path to profitability.
African e-commerce pioneer Jumia is facing renewed investor anxiety after the complete exit of its largest institutional shareholder, Baillie Gifford. The Scottish investment firm, known for its long-term bets on technology disruptors like Tesla and Shopify, has sold off its entire stake in Jumia, drawing the curtain on a six-year investment journey.
At its peak, Baillie Gifford held more than 11% of Jumia’s outstanding shares, signaling strong confidence in the potential of what many once called the “Amazon of Africa.” The firm’s backing helped to legitimize Jumia in the eyes of global investors, especially during and after its 2019 IPO on the New York Stock Exchange. Baillie Gifford even doubled down on its position during turbulent periods, showing rare loyalty in a highly volatile market. However, as of May 2025, Baillie Gifford’s holding stands at zero, effectively crystallizing what analysts estimate to be an 80–90% loss on its investment.
The dramatic exit is not just symbolic; it’s consequential. The loss of such a prominent, seasoned investor sends a strong signal to the broader market, particularly to smaller institutional and retail investors who often look to firms like Baillie Gifford for cues. The divestment reflects deep skepticism about Jumia’s turnaround strategy and long-term viability, especially as it struggles to chart a path to profitability.
Jumia CEO Francis Dufay, who took the reins in late 2022, has publicly committed to steering the company toward break-even status by 2026, with full profitability targeted for 2027. But Baillie Gifford’s departure casts a long shadow over those ambitions, suggesting a loss of faith in the company’s ability to execute its recovery roadmap.
Recent financial disclosures reveal the scale of the challenge ahead. In the first quarter of 2025, Jumia reported a steep 26% decline in revenue compared to the previous year. Additionally, the company’s losses, which had briefly narrowed, have started to rise again. These trends underscore the difficulties Jumia faces in trying to cut costs while also attempting to grow revenue in a price-sensitive and infrastructure-challenged market.
To concentrate resources and optimize performance, Jumia has exited two major markets: South Africa and Tunisia, bringing its operational footprint down to nine core African countries. This retreat is part of a broader restructuring aimed at reducing burn rate and sharpening focus. The company now holds approximately $111 million in cash reserves, a buffer that could last for about two years at current spending levels.
Despite these setbacks, Jumia has identified potential green shoots. Order volumes are reportedly increasing in secondary cities and smaller urban areas, a promising sign that its customer base could expand beyond major capitals. Furthermore, its digital payment platform, JumiaPay, continues to gain traction, potentially evolving into a profitable fintech arm. The company is also investing in its logistics infrastructure, which may serve as a new revenue stream if scaled effectively.
Still, the road ahead is precarious. Without Baillie Gifford’s stabilizing influence and deep pockets, Jumia must now prove that its streamlined model is not just viable, but scalable. Its payments and logistics businesses must do more than survive, they must lead the charge toward profitability. For Jumia, the next chapter begins under pressure, with fewer allies and limited room for error.
