 |
| African B2B E-Commerce Giants Wasoko and MaxAB Complete Historic Merger to Revolutionize Africa’s $600 Billion Informal Retail Sector Image credit: TechCrunch |
Wasoko and MaxAB, two leading African B2B e-commerce startups, have successfully completed the continent’s largest-ever tech merger, following the signing of preliminary terms in Q4 2023. The merger, conducted as an all-stock transaction, transforms both companies from traditional B2B e-commerce platforms into a multi-vertical ecosystem designed to serve Africa’s $600 billion informal retail sector.
Expanding Reach and Impact Across Africa
The merger leverages the extensive online and offline expertise of Wasoko and MaxAB across key African markets including Kenya, Tanzania, Rwanda, Egypt, and Morocco.
As a result, the newly-formed entity now commands the continent’s largest network of B2B informal retailers, with over 450,000 merchants connected to more than 65 million consumers.
Rapid Integration and Impressive Growth Metrics
In a remarkable feat, Wasoko and MaxAB integrated their technology stacks and operations within just 60 days. The combined platform’s fintech verticals have quickly surpassed traditional B2B e-commerce, particularly in Egypt—the group’s largest market.
Digital services alone have generated over $180 million in annualized sales, reaching 7 million consumers through 40,000 retailers. Additionally, a fintech vertical focused on credit financing has disbursed over $20 million in loans to retailers, achieving repayment rates exceeding 99%.
Leadership and Key Stakeholders
The merged company, which employs over 4,000 people, will be co-led by Daniel Yu, CEO of Wasoko, and Belal El-Megharbel, CEO of MaxAB. Both will serve as Co-CEOs and board directors, alongside existing investors from both companies.
Key shareholders include prominent late-stage growth investors such as Silver Lake, Tiger Global, and British International Investment, as well as regional and global venture investors like Beco Capital and Quona Capital.
Vision for Africa’s Retail Future
Commenting on the merger, Daniel Yu, Co-CEO of Wasoko and MaxAB, highlighted the strategic importance of unifying the leading B2B players from North and East Africa. He stated, “This deal establishes an unmatched platform for serving communities across the continent, positioning us to offer the best products and services from across Africa with maximum accessibility and affordability.”
Belal El-Megharbel, Co-CEO, emphasized the significance of the merger, saying, “This merger proves that massive, world-class tech companies can be built in Africa for Africa. As first-movers, we embrace our responsibility to drive the development of a mature and thriving ecosystem, laying the foundation for future companies to unlock Africa’s vast economic potential.”
This historic merger is set to reshape the landscape of Africa’s informal retail sector, driving growth and innovation across the continent.
0 Comments