Wasoko, MaxAB complete merger for digital push

African B2B e-commerce pioneers Wasoko and MaxAB have completed the continent’s largest-ever tech merger following the signing of preliminary terms in Q42023.

Conducted as an all-stock transaction, the deal establishes a truly Pan-African platform for communities to access essential digital and physical goods, marking Wasoko and MaxAB’s evolution from B2B e-commerce companies to a multi-vertical ecosystem for Africa’s $600 billion informal retail sector, says an official release.

Leveraging Wasoko and MaxAB’s hyper-localised online and offline expertise across Kenya, Tanzania, Rwanda, Egypt and Morocco, the newly-formed entity will have the continent’s largest network of B2B informal retailers of more than 450,000 merchants, connected to more than 65 million consumers, the release added. "Following detailed diligence and planning, Wasoko and MaxAB successfully integrated the tech stacks and operations of both companies in under 60 days. The combined company’s retailer network and offerings have enabled the launch of new business units beyond e-commerce and the development of AI systems powering pricing, product selection, demand prediction and route optimisation through an archive of high-quality, localised data stemming from millions of transactions across its individual markets. Independent business units now handle fintech offerings including e-payments, credit financing and digital services topups in addition to e-commerce through a unified app with extensive services for African informal retailers."

With over 4,000 employees, the combined company will be led by Daniel Yu, CEO, Wasoko and Belal El-Megharbel, CEO, MaxAB, who will serve as Co-CEOs and company board directors alongside existing Wasoko and MaxAB investors, the release added. Other key shareholders of the combined company include late-stage growth investors such as Silver Lake, Tiger Global, Lunate, VNV Global, British International Investment, and Avenir Growth with leading regional and global venture investors such as Beco Capital, 4DX Ventures, Quona Capital, Amplo, Breyer Capital, AHL Ventures, Endure Capital and Flourish Ventures.

“Building on burgeoning trade ties between North and East Africa, this deal unifies the leading B2B players in both regions, establishing an unmatched platform for serving communities across the continent," says Yu. "Through our integrated technology stack, our expanded Pan-African reach uniquely positions us to offer the best products and services from across Africa at maximum accessibility and affordability, supercharging our growth beyond what either company could achieve independently.”

El-Megharbel adds: “This merger proves that massive, world-class tech companies can be built in Africa for Africa. As first-movers, we fully embrace our responsibility to drive the development of a mature and thriving ecosystem, building foundational infrastructure that will empower future companies to fully unlock Africa’s vast economic potential in years to come.”