Brimore Is Taking A Huge Valuation Cut As Tech Rout Impacts African Startups

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Egyptian social commerce startup, Brimore, is taking a significant valuation cut in the process of raising fresh funding, people familiar with the matter said.

The Cairo-based startup, which is seeking new capital injection to sustain the growth of its promising social commerce and parallel distribution platform boasting 75,000 sellers and 300 suppliers across Egypt, is settling for a major down round due to changing market realities, WeeTracker understands.

Brimore, last valued at around USD 100 M at the point of its USD 25 M Series A announced in January, has had its valuation slashed by “at least half,” per informed sources.

A combination of factors, including a recalibration of the ecosystem in which Brimore operates and the ‘fat-shedding’ happening in the wider tech market on a global scale, has been revealed to be responsible for Brimore’s valuation trim; somewhat epitomising recent cases of the tech rout impacting African tech which, itself, had seemed largely unaffected earlier.

Mohamed Abdulaziz, Brimore’s Co-Founder and CEO, did not respond to a request for comment. One of the startup’s main investors would refrain from commenting on the matter while reiterating that they prefer to “focus on supporting the company during these difficult times.” Two other investors declined to comment.

Brimore holds its own as one of the leading players championing the ongoing social commerce wave in Africa; a trend piggybacking on exploding social media usage on the continent. In Egypt alone, the startup is looking to capture a market estimated to be worth over USD 14 B by 2024.

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