In what is being hailed as the largest tech merger in Africa’s history, Wasoko and MaxAB, two leading B2B e-commerce companies, have successfully completed an all-stock transaction, creating a Pan-African platform designed to serve the continent’s expansive informal retail sector. The merger, finalized after the signing of preliminary terms in Q4 2023, signals a significant evolution for both companies as they transition from traditional e-commerce operations to a multi-vertical digital services ecosystem.
According to a press release from Wasoko and MaxAB, the newly formed entity now connects over 450,000 informal retailers to more than 65 million consumers across Kenya, Tanzania, Rwanda, Egypt, and Morocco. This merger has integrated the technology stacks and operations of both companies in under 60 days, leading to the creation of independent business units that handle a range of services beyond e-commerce. These units include fintech offerings such as e-payments, credit financing, and digital services top-ups, all accessible through a unified application aimed at enhancing the operational capabilities of informal retailers.
The release also highlights that the fintech verticals, particularly in Egypt, have quickly outpaced the company’s e-commerce operations, generating over $180 million in annualized sales to 7 million consumers through 40,000 retailers. Additionally, the credit financing unit has disbursed over $20 million in loans to retailers, with a repayment rate exceeding 99%. Wasoko projects that fintech revenue will more than double by the end of December 2024, emphasizing the significant impact of these services within the company’s broader strategy.
Daniel Yu, Co-CEO of Wasoko and MaxAB, stated that the merger “unifies the leading B2B players in both regions, establishing an unmatched platform for serving communities across the continent.” Yu further noted that the expanded Pan-African reach and integrated technology stack position the company to offer a wide range of products and services at competitive prices, potentially accelerating growth beyond what either company could have achieved independently.
The merger has also driven growth in the core e-commerce services of the combined entity. According to Wasoko, its B2B e-commerce operations are now profitable in most of its markets, with private label products—such as cooking oil, rice, and tomato paste—accounting for over 10% of total sales. These products are central to new cross-border sourcing initiatives aimed at boosting intra-African trade within the group.
The merger is being led by Co-CEOs Daniel Yu and Belal El-Megharbel, the latter of whom is the former CEO of MaxAB. Both executives will serve on the company’s board alongside investors from both Wasoko and MaxAB. Key shareholders include late-stage growth investors such as Silver Lake, Tiger Global, Lunate, and British International Investment, as well as venture investors like Beco Capital and Quona Capital.
Belal El-Megharbel, Co-CEO, remarked in the release that this merger “proves that massive, world-class tech companies can be built in Africa for Africa,” emphasizing the company’s role as a first-mover in driving the development of a mature and thriving ecosystem on the continent.
This merger, according to industry analysts, is expected to set a new benchmark for tech mergers in Africa, potentially unlocking the continent’s vast economic potential by providing the foundational infrastructure needed for future businesses to scale. The combined company’s successful integration and expansion efforts are seen as a significant step toward establishing a robust digital economy in Africa, with fintech and e-commerce playing crucial roles in this transformation.
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