African B2B E-commerce Startups Wasoko and MaxAB Merge to Create Pan-African Digital Services Powerhouse
In a landmark move for Africa’s digital economy, Wasoko and MaxAB, two of the continent’s leading e-commerce companies, have successfully merged through an all-stock transaction, creating a Pan-African platform poised to revolutionize the informal retail sector. This merger, finalized following the signing of preliminary terms in Q4 2023, marks a significant strategic evolution for both companies as they transition from traditional e-commerce operations to a broader multi-vertical digital services ecosystem.
The newly formed entity now boasts an extensive network, connecting over 450,000 informal retailers to more than 65 million consumers across key markets, including Kenya, Tanzania, Rwanda, Egypt, and Morocco. The rapid integration of technology stacks and operations—completed in under 60 days—has resulted in the establishment of independent business units offering a range of services beyond e-commerce. These include fintech offerings such as e-payments, credit financing, and digital service top-ups, all accessible through a unified application designed to enhance the operational capabilities of informal retailers.
Rapid Growth in Fintech Services
The merger has significantly accelerated the growth of the company’s fintech verticals, particularly in Egypt, where these services have already outpaced traditional e-commerce operations. The fintech unit has generated over $180 million in annualized sales, serving 7 million consumers through 40,000 retailers. Moreover, the credit financing division has disbursed more than $20 million in loans to retailers, boasting a remarkable repayment rate exceeding 99%. With Wasoko projecting that fintech revenue will more than double by the end of December 2024, these services are set to play a pivotal role in the company’s broader growth strategy.
Daniel Yu, Co-CEO of the newly merged entity, emphasized the strategic importance of this union, stating that it “unifies the leading B2B players in both regions, establishing an unmatched platform for serving communities across the continent.” Yu highlighted that the combined 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 is spearheaded by Co-CEOs Daniel Yu and Belal El-Megharbel, the latter being the former CEO of MaxAB. Both executives will serve on the company’s board, alongside investors from Wasoko and MaxAB. Key shareholders include prominent late-stage growth investors such as Silver Lake, Tiger Global, Lunate, and British International Investment, along with venture investors like Beco Capital and Quona Capital.
A New Benchmark for African Tech Mergers
According to industry analysts, this merger is expected to set a new benchmark for tech mergers in Africa, unlocking the continent’s vast economic potential by providing the foundational infrastructure needed for future businesses to scale. The 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.
