Last year, we covered the merger plans between Wasoko, a Kenyan B2B e-commerce platform, and Egypt’s MaxAB.
Today, we’re excited to announce that the two African B2B e-commerce giants have successfully completed their merger, marking it as Africa’s largest tech merger to date.
The merger between Wasoko and MaxAB signifies a pivotal shift from traditional B2B e-commerce to a comprehensive multi-vertical ecosystem.
This new entity is poised to serve Africa’s vast $600 billion informal retail sector, leveraging the strengths of both companies to create a more robust and diversified business model.
Expanding Beyond E-commerce: Fintech Innovations
One significant outcome of this merger is the launch of new fintech business units. These extensions go beyond the core e-commerce offerings, encompassing e-payments, credit financing, and digital services top-ups.
Notably, these fintech services have rapidly outpaced B2B e-commerce in Egypt, which stands as the group’s largest market.
Impressive Performance Metrics
The merged entity has already demonstrated remarkable performance across various verticals:
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Digital services alone have generated over $180 million in annualised sales to 7 million consumers through 40,000 retailers.
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In the past year, the newly-formed entity has disbursed over $20 million worth of financing to retailers with repayment rates exceeding 99%.
The core B2B e-commerce service has also achieved profitability in the majority of its markets, with the platform’s private label products contributing significantly to overall sales, accounting for over 10% of total e-commerce revenue.
Looking ahead, the company projects a remarkable doubling of overall revenue year-on-year by December 2024.
Leadership and Vision
The combined company will be led by two visionary co-CEOs: Daniel Yu, formerly of Wasoko, and Belal El-Megharbel, previously at the helm of MaxAB.
Both will serve as company board directors alongside existing investors from Wasoko and MaxAB. This leadership structure aims to harness the complementary strengths of both organizations and drive the company’s ambitious growth strategy.
Also Read: Kenya’s BuuPass among 12 finalists in the Ecobank Fintech Challenge
The successful completion of this merger sets a new benchmark for the African tech ecosystem. Both founders express hope that this union will inspire and pave the way for other businesses to scale effectively across the continent, fostering a more vibrant and interconnected African tech landscape.
Expansive Pan-African Presence
The newly formed entity boasts an impressive operational footprint, spanning multiple African countries including Kenya, Tanzania, Rwanda, Egypt, and Morocco.
With over 450,000 merchants connected to its platform, the company now serves an extensive consumer base of more than 65 million people, solidifying its position as Africa’s largest network of B2B informal retailers.
As the company embarks on this new chapter, a rebranding process is underway to reflect its expanded scope and vision. While the new name remains under wraps, it promises to embody the combined strengths and aspirations of Wasoko and MaxAB.
