Delivery Hero Sell-Down and More Tech News from Africa

Good morning! Let’s dive into today’s tech headlines:

Egyptian Logistics Company Exceeds Expectations

Bosta, an Egyptian last-mile logistics startup, has delivered a remarkable 75% internal rate of return (IRR) to early investors. This exit was facilitated by Beltone Venture Capital and Citadel International Holdings through their joint fund.

The impressive returns were realized in just two years as Bosta stabilized in a market that had previously experienced high inflation. The buyer, whose identity remains undisclosed, likely saw the company’s potential ahead of its planned $170 million IPO on Egypt’s bourse later this year.

A diverse group of stakeholders now back Bosta: a VC fund cashing out, strategic fintech Fawry maintaining its investment, and an anonymous buyer positioning for public markets. This suggests a deliberate staging process leading up to the listing.

Delivery Hero Stake Sale Continues

Prosus has sold another 5% stake in German food delivery giant Delivery Hero to Hong Kong-based Aspex Management for approximately €335 million ($395 million).

This follows an earlier sale of 4.5% to Uber for $318 million and continues Prosus’s strategy to reduce its holdings in Delivery Hero.

The sales are partly driven by European Commission regulations requiring Prosus to offload stakes following its acquisition of Just Eat Takeaway.com, with a deadline approaching for reducing ownership to a single-digit percentage.

Aspex Management, now holding about 14% of Delivery Hero, has been vocal in pushing for management changes and asset sales at the company.