VNV Global, the Swedish investment firm known for backing growth-stage tech companies across emerging markets, has reported that its 2021 investment in Egypt’s online grocery startup Breadfast has nearly doubled in value — a rare win in a quarter where most African bets showed little to negative movement.

In its Q2 2025 report, VNV disclosed that its 7.9% stake in Breadfast is now worth $30.2 million, up from the $16.9 million it initially invested four years ago. That valuation puts Breadfast’s post-money valuation at approximately $382.3 million as of June 30 — a jump from the $268 million valuation it secured during a Series B extension just last year.

A Clear Standout in a Mixed Portfolio

While Breadfast’s performance was one of the few bright spots in VNV Global’s African exposure, other companies in its portfolio struggled. Kenya-based Wasoko saw a 25% quarter-on-quarter valuation drop, while mobility firm SWVL continues to trade at depressed levels on public markets. Vezeeta, a Cairo-born healthtech startup now headquartered in Dubai, showed some promise with a valuation bump — but its growth is still based on dated transactions and speculative revenue multiples.

Breadfast, by contrast, was valued using a recent market transaction: its recent Series B extension. It is currently VNV’s largest African holding by fair value.

Inside Breadfast’s Growth Story

Founded in 2017, Breadfast has grown into Egypt’s leading quick-commerce grocery platform, delivering a catalogue of more than 6,000 SKUs — from freshly baked bread to meat, dairy, and cleaning supplies — in under 60 minutes. Its vertically integrated model, often seen as capital intensive in other markets, has been a strategic advantage in Egypt.

The company now operates over 30 fulfillment centers across Cairo, Giza, Alexandria, and Mansoura — with the majority reportedly profitable — and delivers close to one million orders per month to over 300,000 active users.

Critically, Breadfast surpassed $150 million in annual recurring revenue in 2024, a figure that represents a 38-fold increase since 2021 when adjusted for constant currency. Despite Egypt’s inflationary pressures and multiple currency devaluations since 2022, Breadfast has improved its bottom line while maintaining a retention rate exceeding 80%. VNV highlighted the company’s dollar-based GMV retention — above 100% after 20 months — as an indicator of its stickiness and potential for long-term profitability.

Owning the Supply Chain — By Necessity, Not Luxury

In a market where logistics can break a digital business, Breadfast’s decision to control its entire supply chain — from its own bakeries to last-mile delivery — has paid off.

“Building a grocery marketplace alone wouldn’t work. Owning the supply chain was necessary because the margins are thin, and reliability in emerging markets is key,” said co-founder and CEO Mostafa Amin in a recent interview.

This operational control has also allowed the startup to respond nimbly to customer preferences. The company offers both on-demand delivery and early morning scheduled drop-offs, targeting a mix of households and working professionals.

Next: Fintech

In a strategic move that mirrors super-app trends seen in Southeast Asia, Breadfast has begun to layer financial services on top of its core grocery business. “Breadfast Pay,” its recently launched fintech arm, aims to provide services such as deposits, withdrawals, and savings accounts, along with a branded payment card.

If successful, this could not only drive customer engagement but also open new revenue streams and increase wallet share — especially among unbanked or underbanked segments of Egypt’s population.

Valuation Reflects Growth — and Optimism

While Breadfast’s nearly $400 million valuation is a rare exception in Egypt’s tech landscape — where many startups are either in consolidation mode or facing flat rounds — VNV’s report underscores continued investor confidence.

The company’s valuation remains classified under IFRS fair value hierarchy as Level 3, meaning it’s based on inputs that are not directly observable in public markets. However, VNV has not reclassified the asset or adjusted its methodology, implying confidence in the latest pricing.

With the grocery startup planning to expand into more Egyptian cities , investors will be watching closely to see if Breadfast can extend its operating model across more urban environments without sacrificing margins.

The Bigger Picture

For VNV Global, Breadfast’s success comes at a time when its broader African portfolio is under pressure. Wasoko’s valuation was slashed to $7.5 million this quarter, based on a 1.5x revenue multiple — down from Q1 and far below its last transaction in 2022. SWVL, once a SPAC-era darling, is now a cautionary tale with a market cap under $3 million. Vezeeta’s bump in valuation, attributed to stronger revenues, still leaves its total fair value at just $2.41 million.

Breadfast’s sustained growth — in both operational metrics and valuation — stands in contrast to these underperformers. Whether the company can continue to deliver returns as it expands beyond groceries and into financial services may determine whether it remains a standout or becomes an outlier in a more challenging market for tech in Africa.