Wasoko Value Drops to $260 Million After VC Slashes Stake

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Wasoko, a leading African B2B e-commerce platform, has seen its valuation significantly reduced. This comes after VVN Global, a major investor, marked down the value of its stake in the company by nearly half.

Key Points:

• Valuation Drop: Wasoko's valuation is now estimated at $260 million, a 48% decrease from VVN Global's previous assessment.

• Investor Downgrade: VVN Global's annual report for 2023 reflects this reduced valuation based on their 4.2% stake in Wasoko.

• Shifting Valuation Approach: VVN Global emphasizes using trading multiples of public companies for valuation, rather than relying solely on historical funding rounds.

Context:

• Previous Valuation: Just months before this markdown, in Q4 2022, Wasoko's valuation stood at $501 million.

• Recent Developments: This news coincides with Wasoko's initial merger discussions with MaxAB, an Egyptian B2B e-commerce company.

• Funding History: Wasoko secured $125 million in a Series B round in 2022, led by Tiger Global and Avenir, at a $625 million valuation.

Uncertainties:

The impact of this valuation markdown by VVN Global on Wasoko's future funding prospects and the potential merger with MaxAB remains to be seen.

This development highlights the potential volatility in startup valuations, especially when different valuation methodologies are applied. While Wasoko has experienced impressive growth, it now faces the challenge of demonstrating its long-term viability to retain investor confidence.

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