Swedish investment firm VNV Global has reported a significant increase in the value of its stake in Egyptian grocery startup Breadfast, offering a rare success story in an otherwise difficult quarter for African tech investments. In its Q2 2025 report, VNV disclosed that its 7.9% stake in Breadfast is now worth $30.2 million, nearly double the $16.9 million it invested in 2021. This updated valuation implies a post-money valuation of approximately $382.3 million for Breadfast as of June 30.
Breadfast Defies Market Downturns
While Breadfast’s valuation surged, other African companies in VNV’s portfolio fared poorly. Kenya-based e-commerce firm Wasoko saw a 25% quarter-on-quarter decline, while Egyptian mobility player SWVL continues to trade at historically low levels. Healthtech startup Vezeeta showed some growth in valuation, but its progress remains tied to older financials and speculative projections, highlighting Breadfast’s clear distinction in the portfolio.
Rapid Growth Anchored in Operations
Founded in 2017, Breadfast has grown to become Egypt’s leading quick-commerce grocery platform. The company delivers over 6,000 stock-keeping units (SKUs) ranging from fresh bread and dairy to cleaning supplies in under an hour. Operating over 30 fulfillment centers across major cities, including Cairo, Giza, Alexandria, and Mansoura, Breadfast now processes close to one million orders monthly for more than 300,000 active users.
Revenue Milestones and Customer Loyalty
Breadfast crossed $150 million in annual recurring revenue in 2024, marking a 38-fold increase since 2021 after adjusting for currency fluctuations. The company’s retention rate remains above 80%, and VNV highlighted its dollar-based gross merchandise value (GMV) retention, which exceeds 100% after 20 months. These metrics point to both strong user engagement and a resilient business model, even amid Egypt’s inflationary challenges and currency volatility.
A Fully Integrated Supply Chain Strategy
Breadfast’s decision to fully own its supply chain, including in-house bakeries and last-mile logistics, has played a critical role in its success. In a region where logistics are often a startup’s biggest obstacle, this operational control has ensured reliability and tighter cost management. CEO Mostafa Amin noted that while the model is capital-intensive, it was essential in a market where thin margins and infrastructure issues make outsourcing less viable.
Expansion into Financial Services
In a move aligned with the super-app strategies of Southeast Asia, Breadfast has launched a fintech arm called Breadfast Pay. This new vertical offers services like savings accounts, cash deposits and withdrawals, and branded payment cards. By entering the financial services space, Breadfast aims to deepen customer loyalty and open new revenue channels, particularly among Egypt’s unbanked and underbanked populations.
Valuation Validated by Recent Transactions
Unlike other companies whose valuations rely on dated or internal estimates, Breadfast’s latest valuation stems from a recent market transaction during its Series B extension. The valuation is categorized under IFRS Level 3, indicating it is based on non-public data but is still considered reliable within accounting standards. VNV has not changed its valuation method, suggesting continued confidence in Breadfast’s market performance.
A Bright Spot in a Pressured Portfolio
Breadfast now stands as VNV Global’s largest African holding by fair value, a distinction that highlights its stability and growth in a volatile market. In contrast, Wasoko’s valuation has dropped to $7.5 million, and SWVL’s market cap is under $3 million, reflecting the broader headwinds facing African startups. Vezeeta’s valuation rose modestly to $2.41 million but remains constrained by limited transaction activity.
As many African startups face flat rounds, reduced investor appetite, and operational struggles, Breadfast’s performance offers a compelling counter-narrative. Its strong financials, loyal user base, and expansion into fintech point to a company not just surviving but thriving. For VNV Global, Breadfast’s continued success may serve as both a validation of early conviction and a benchmark for evaluating future growth-stage investments in the region.