A Swedish investment firm, VNV Global, has cut the value of its investment in Kenyan B2B eCommerce startup, Wasoko, by 48%.
According to VNV, Wasoko’s fair value dropped in December 2023, to around $260 million. This happened when Wasoko announced its merger talks with an Egyptian counterpart, MaxAB.
However, VNV had valued Wasoko at a whopping $501 million, therefore the drop is a huge one within a year, especially when you factor in some complications with funding rounds along the way.
VNV says it’s still holding onto its stake in Wasoko, even after the merger with MaxAB. Despite the recent setback, it remains optimistic about the combined company’s long-term prospects.
Wasoko has had many ups and downs. Founded in 2014, it has expanded to multiple African markets and boasts a customer base of over 200,000 retailers. But times have been tough of late, with layoffs, cost cuts, and closures becoming all too common.
Wasoko is not giving up anytime soon though, as it’s doubling down on profitability, focusing on Kenya, Rwanda, and the Democratic Republic of Congo.
