March 29, 2024

African B2B Grocery Giant Wasoko Faces 48% Valuation Markdown

Wasoko, one of Africa’s largest B2B grocery marketplaces, has experienced a 48% markdown in its valuation. 

A B2B Grocery Marketplace

Founded by Daniel Yu in 2014, Nairobi-based Wasoko has grown remarkably, expanding its operations across multiple African markets.

By 2023, it boasted a significant customer base, secured agreements with major suppliers, and offered competitive pricing. 

TechCrunch reports that VNV Global, a Swedish investment firm, has revised Wasoko’s value to about $260 million, a 48% reduction from previous estimates, according to its annual report for 2023.

This revision coincides with Wasoko’s planned merger with its Egyptian counterpart, MaxAB.

Wasoko’s Valuation Journey

After raising a substantial $125 million Series B investment, Wasoko was valued at $501 million in Q4 2022. 

However, complications arose when only $113 million of the pledged funds were received, despite major investors like Tiger Global and Avenir.

Wasoko is not alone in its challenges. TechCrunch reports that B2B e-commerce startups across Africa have faced tough unit economics, high costs, and a squeeze on funding, leading to cost cuts, layoffs, and closures.

Despite the markdown, Wasoko remains optimistic. 

“Wasoko is proud to have VNV Global as one of our major investors,” the company told TechCrunch.

“VNV has not reduced its shareholding in Wasoko whatsoever and continues to remain active and supportive of the company, including through our landmark merger with MaxAB.

Sara Keenan

Tech Reporter at POCIT. Following her master's degree in journalism, Sara cultivated a deep passion for writing and driving positive change for Black and Brown individuals across all areas of life. This passion expanded to include the experiences of Black and Brown people in tech thanks to her internship experience as an editorial assistant at a tech startup.