Technology
Jumia’s investors rethink their stakes — for better and worse • TechCrunch

Baillie Gifford, the Edinburgh-based asset management firm long known to have a penchant for pre-IPO tech companies, has reduced its shares in African e-commerce giant Jumia, per the latest 13G/A filing released by the asset manager.
According to the filing, Baillie Gifford disclosed ownership of 18.75 million shares in Jumia, representing 13.69% of the company. In Jumia’s previous filing from a year ago, the asset management firm had 19.85 million shares, owning 10.06% of the company at the time. That’s a 5.50% decrease in shares and a 0.67% drop in ownership.
The Scotland asset management firm, well into its centenarian years, has been an early backer of reputable private and public tech companies such as Amazon, Google, Salesforce, Tesla, Airbnb, Spotify, Lyft, Palantir and SpaceX. It has also invested in deals across other geographies, including China’s Alibaba and NIO, and African-based internet businesses Naspers and Jumia.
Baillie Gifford bought Jumia shares in 2019, three years after the e-commerce giant went public. The Scottish mortgage trust firm, which is Jumia’s largest institutional investor, has sold and bought back a portion of its shares every January since then, with this recent move being its most significant share drop yet. Baillie Gifford remains the e-commerce platform’s largest shareholder.
Last November, following several years of reporting losses, Jumia made changes to its management after installing Francis Dufay as acting CEO to replace co-founders Sacha Poignonnec and Jeremy Hodara, who resigned from their co-CEO roles. The move came with instant cuts across various product lines and redundancies, including letting go of a few executives from its Dubai office. All this is to chase profits that have eluded the company.
In Q3 2022, the African e-tailer made considerable progress in trimming its losses by 13% from $52.5 million to $45.5 million, its lowest in six quarters. Despite this progress, public confidence in the e-commerce outfit seems to have waned. Jumia has seen its share price reduced by 51% within the past year and saw its stock drop to $3.88 per share after Wednesday’s news; it trades slightly above $4 with a market cap of $404 million. The e-tailer closed the third quarter with a liquidity position of $284.7 million, among which $104.3 million is in cash and cash equivalents.
Baillie Gifford’s decision to sell some of its shares may have to do with Jumia’s performance on the bourse. On the other hand, it could be the investment firm’s way of cutting back on the mounting losses it began to incur last year, particularly around growth stocks, which have taken massive hits in the face of rising interest rates and recession fears (last week, the investment group admitted 2022 was a “humbling year” after it lost more than $14 billion on stakes in Tesla and Shopify, according to Financial Times). Yet that doesn’t explain why the fund group, with over $230 billion AUM, increased its position in other loss-making companies, such as Chinese EV maker NIO and Wix.com, this past week. Jumia’s next earnings call next month should shed more light on the matter.
It’s not all gloom for Jumia, though, as other large shareholders, including D. E. Shaw, Goldman Sachs, and Bank of America, took a different route and increased their shares in the company, owning 2.21%, 1.27% and 1.40%, respectively, per Nasdaq.
Technology
France bans recreational apps like TikTok on government devices

France is the latest country that is taking steps to ban TikTok from government-managed devices. Stanislas Guerini, the Minister of Public Transformation and Service, and his services issued a succinct statement announcing the move and the reasoning behind this change.
But there’s a twist. Instead of simply banning the social media app, the French government is saying that all recreational apps are now banned from work devices.
“For the past few weeks, several European and international partners have adopted measures to limit or prohibit downloading and installing the TikTok application by their public administrations,” the French government wrote.
For example, the U.S. House of Representatives banned TikTok on lawmakers’ government-issued mobile devices. In Canada, TikTok has also been banned from government devices. The European Commission issued a directive asking all employees to remove TikTok from their work devices as well.
In all those instances, government bodies state that they are concerned about data privacy. TikTok is owned by ByteDance, a private Chinese company. They believe that user data could be stored and accessed by the Chinese government.
TikTok has said several times that the company doesn’t share user data with the Chinese government. The company also plans to store data locally. In Europe’s case, TikTok tried to reassure European governments by announcing that multiple data centers will be up and running in Europe in the near future. TikTok plans to migrate all European user data to European data centers over the next couple of years.
In addition to this data sovereignty strategy, TikTok is “reducing employee access to European user data; minimising data flows outside of Europe,” wrote Rich Waterworth, TikTok’s General Manager Operations, Europe.
Of course, it means that governments have to trust TikTok’s word, which doesn’t seem to be the case in France. “After an analysis of the stakes, notably security, the government has decided to prohibit from now on the downloading and installation of recreational applications on professional phones provided to public agents,” the Ministry of Public Transformation and Service announced.
So what is a recreational app exactly? Guerini’s office told the AFP and AP news agencies that some of these apps include TikTok (obviously), but also Twitter, Instagram, Netflix, Candy Crush and other games, as well as dating apps.
It sounds like a broad and loose concept and I hope we’ll get some clarification about the exact scope of the recreational category. We’ve reached out to Guerini’s office and will update this article if we get more details.
“Recreational applications do not have sufficient a level of cybersecurity and data protection to be deployed on government equipment. These applications may therefore pose a risk to the data protection of these administrations and their public officials,” the French government wrote.
A message has been sent to all ministries. The inter-ministerial digital administration (DINUM) and the cybersecurity agency (ANSSI) will follow up with more specific instructions about the implementation of the ban.
There will be one notable exception. If you need to install an app to communicate about your administration’s work, you will be able to do do so. In other words, if you are a social media manager, you will be able to install Twitter, Facebook and, yes, TikTok.
Technology
Twitter says source code was leaked on GitHub, now it’s trying to find the culprit
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Parts of Twitter’s source code were recently leaked online via GitHub, the New York Times reports, but were taken down after the social media platform filed a DMCA request. The request, which GitHub has published online, notes that the leaked information included “proprietary source code for Twitter’s platform and internal tools.”
The NYT notes that the source code maybe have been public for several months before being removed — the GitHub profile associated with the DMCA takedown lists a single (non-public) code contribution from early January. The name of the account is listed as “FreeSpeechEnthusiast,” in an apparent reference to Twitter CEO Elon Musk calling himself a “free speech absolutist” in the past.
Twitter has asked for the names and IP addresses of anyone that downloaded the code
Proprietary source code is often among a company’s most closely held trade secrets. Making it public risks revealing its software’s vulnerabilities to would-be attackers, and can also give competitors an advantage by being able to see non-public internal workings. Source code has been a common target for hackers in the past, including in attacks on Microsoft, and the Cyberpunk 2077 developer CD Projekt Red.
As well as asking GitHub to take down the code, Twitter submitted a court filing in California in an attempt to find the person responsible, and to get information on any other GitHub users who may have downloaded the data. Bloomberg reports that the filing asked the court to order GitHub to reveal users’ names, addresses, telephone numbers, emails, social media profiles, and IP addresses.
A spokesperson for GitHub did not respond to questions about whether it would comply with Twitter’s request to supply identifying information, and an email sent to Twitter’s official press address received an auto-generated poop emoji in response. (Twitter’s press office was disbanded shortly after Musk’s acquisition.)
According to the NYT, Twitter executives suspect that an employee who left the company last year may be responsible for the leak. But that doesn’t exactly narrow things down given Musk laid off thousands of the company’s staff shortly after taking control of the social media network. Fears that departing employees might attempt to sabotage the business on their way out have reportedly led Twitter to implement code freezes ahead of layoffs.
News of the leaked source code comes just days before Twitter will supposedly open source “all code used to recommend tweets” on March 31st. But open-sourcing a recommendation algorithm like this (if it actually goes ahead this time), will likely reveal far less of the company’s proprietary code than the recent leak posted on GitHub.
Twitter has been through a turbulent time since its acquisition by Musk last year. The Tesla CEO, who paid $44 billion for Twitter last year but now says it’s worth just $20 billion, has been attempting to overhaul the social media network with an intense focus on cost-cutting and building out new revenue opportunities like its paid Twitter Blue subscriptions. But the core reliability of the service appears to have suffered as a result, with several outages and interruptions reported in recent months.
Technology
Alibaba founder Jack Ma returns to China after a year of uncertainty

Jack Ma’s whereabouts are making headlines again roughly a year after the billionaire founder of Alibaba disappeared from the public eye.
Bloomberg reported Monday that Ma had chosen to stay abroad despite China’s efforts to restore confidence in entrepreneurs, citing unnamed sources. Within hours, however, news surfaced that Ma actually visited an Alibaba-funded K-12 school in Hangzhou, according to an article published by the school, Yungu.
The Bloomberg article had since been updated to reflect Ma’s appearance in Hangzhou, home to the founder and Alibaba, where he talked about how ChatGPT posed a challenge to education during the school visit.
The renewed attention to Ma’s location comes at a time when China is trying to voice support for the private sector following a years-long crackdown on the tech industry, including shelving the IPO plans of Ant Group, the fintech affiliate of Alibaba. The movement prompted some founders to move abroad and seek overseas expansion.
The news of Ma also comes as Chinese tech firms are facing unprecedented pressure in the West. Last Thursday, U.S. lawmakers grilled TikTok CEO Shou Zi Chew in a congressional hearing that spanned five hours, firing harsh questions that brought to light the irreconcilable differences between the two superpowers. The hearing, as one Chinese founder said to TechCrunch, sent a chill up their spine.
TikTok isn’t the only one running into roadblocks in the U.S. A group of “businesses and individuals” have formed a “Shut Down Shein” campaign to question the business practices of Shein, the Singapore-headquartered fast fashion giant that has risen to global dominance thanks to its data-driven supply chains in China. Shein refuted a report that it faced risks of being shut down in the U.S.
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