MaxAB and Wasoko Join Forces to Create Africa’s Largest B2B E-commerce Giant

Two of Africa’s leading e-commerce giants, MaxAB and Wasoko, have officially announced their intent to merge, marking a significant milestone in the evolution of Africa’s digital retail landscape. The merger, described as a union of equals, is set to propel the transformation of Africa’s informal retail sector, creating the largest B2B e-commerce entity on the continent.

The combined entity resulting from the merger will become a technological juggernaut with a colossal customer base exceeding 450,000 merchants. These merchants collectively serve an estimated 65+ million consumers across eight African countries, namely Egypt, Morocco, Kenya, Tanzania, Rwanda, Uganda, Zambia, and the Democratic Republic of Congo. This merger positions Wasoko and MaxAB as the dominant players in the African tech space and signifies a strategic move to solidify their positions as the leaders in digital retail.

Established in 2018 by Belal El-Megharbel and Mohamed Ben Halim in Egypt, MaxAB is a B2B e-commerce platform fostering connections between suppliers and traditionally underserved retailers. Providing an extensive array of financial solutions, MaxAB expanded its services in 2021 with the introduction of MaxAB Payments. This fintech service empowers local merchants to accept payments for a diverse range of services tailored to meet the needs of their end customers. In 2022, MaxAB further enhanced its offerings with the launch of its Logistics as a Service (LAAS), enabling retailers to efficiently manage B2C e-commerce shipments for various B2C e-commerce platforms.

Established in 2013 by Daniel Yu in Kenya, Wasoko stands as the premier e-commerce platform catering to informal retailers throughout Sub-Saharan Africa. Through its mobile app, Wasoko empowers retailers to effortlessly replenish their business products, offering the added convenience of complimentary same-day delivery.

This historic merger is not only the largest tech merger in Africa but also a testament to the sustained growth and success of both companies. Since the beginning of 2023, Wasoko has experienced a remarkable 30% increase in monthly revenue, accompanied by a 20% rise in its Sub-Saharan African network of merchants. Simultaneously, MaxAB has seen a 25% growth in its monthly active merchant network and an impressive 50% surge in fintech transaction volumes. These positive trends underscore the robust financial health and strategic foresight that have defined the trajectories of both Wasoko and MaxAB.

The merger is poised to accelerate the path to profitability for both entities, leveraging the combined elite talent and capabilities across diverse markets. This collaboration aims to synergize efforts in enabling greater intra-Africa trade and implementing cutting-edge technologies on a Pan-African scale. The joint force of Wasoko and MaxAB is not only in their B2B e-commerce prowess but also in their integrated payment solutions, merchant financing, and proprietary logistics operations. These components form the bedrock of their shared vision to address the significant challenges hindering the growth of Africa’s $850 billion informal retail sector.

Belal El-Megharbel, CEO of MaxAB, expressed his enthusiasm for the merger, stating, “This merger is the culmination of developing excellent teams, a lot of hard work over the years, and a commitment to innovative solutions. I am proud of what we have achieved as MaxAB, and even more excited for our future together with Wasoko.”

Wasoko CEO Daniel Yu echoed this sentiment, emphasizing the bold step towards a pan-African presence, saying, “Our merger with MaxAB underscores our commitment to empowering businesses and connecting consumers across all parts of the African continent with an affordable and diverse range of essential products.”

Both Belal and Daniel are set to continue as full-time executive leaders post-merger, highlighting their commitment to shaping the long-term future of the combined entity. The completion of the merger is subject to internal approvals and customary closing conditions, and as part of the transaction, the combined business has secured additional investment, providing ample runway to reach profitability and explore new opportunities.