Swedish investment firm VNV Global, which supports startups in sectors like mobility, health, and marketplaces, recently adjusted the valuation of its investment in Wasoko, an African B2B e-commerce startup, downward by 48%.
Launched in Kenya in 2014 by Daniel Yu, the B2B grocery marketplace has expanded its operations across six additional African markets by 2022, boasting a $300 million Gross Merchandise Value (GMV) and serving over 200,000 small retailers through its app.
Following the revision by VNV Global, Wasoko’s value has adjusted to $260 million, a 48% reduction from previous estimates, according to its annual report for 2023.
The revision happens at a time the company is preparing a merger with Egyptian peer MaxAB. This valuation is drawn from VNV’s 4.2% ownership in Wasoko, now valued at $10.9 million.
In 2022, VNV had valued Wasoko at $501 million. This followed a $125 million Series B funding round co-led by Tiger Global and Avenir. This funding put Wasoko’s valuation at $625 million.
Wasoko later revealed that it received only $113 million of the announced funding. VNV Global had contributed $20 million to this round.
VNV Global based its valuation adjustment on a model considering the trading multiples of public market peers rather than past funding rounds.
According to Wasoko, VNV has maintained its stake in the company and this continued investment is a vote of confidence in its long-term value growth.
Before the merger news, VNV Global, expressed its intention to retain its Wasoko shares. VNV , emphasized its long-term investment strategy, foreseeing the merged entity’s significant growth potential.
The merger with MaxAB, a B2B e-commerce platform operating in Egypt and Morocco, is aimed to strengthen both companies’ positions in the African e-commerce landscape, aiming for profitable leadership in the sector.