In a landmark event for Africa’s tech industry, Kenya’s Wasoko and Egypt’s MaxAB have merged to form the continent’s largest B2B e-commerce platform. This all-stock transaction, finalized in late 2023, represents a significant shift in the African informal retail sector, blending Wasoko’s strong presence in East Africa with MaxAB’s leading position in North Africa. Together, they now serve over 450,000 merchants across eight countries, including key markets like Kenya, Tanzania, Egypt, and Morocco.
The merger signifies a strategic evolution for both companies as they altogether move beyond their traditional B2B e-commerce roles to become a multi-vertical ecosystem tailored to Africa’s $600 billion informal retail market. By integrating their operations and tech infrastructures in a rapid 60-day process, the newly formed entity has positioned itself to improve supply chain efficiency and expand access to essential goods for over 65 million consumers across the continent.
However, the journey to this successful merger was not without its challenges. Regulatory hurdles, internal restructuring, and the need for substantial capital investment were significant obstacles. Despite these challenges, the merger has paved the way for the launch of new business units that include fintech offerings like e-payments, credit financing, and digital services top-ups. These verticals have rapidly overtaken traditional B2B e-commerce in Egypt, the group’s largest market, where digital services alone generate over $180 million in annualized sales through 40,000 retailers, serving 7 million consumers.
Speaking on the merger, Daniel Yu emphasized the strategic importance of the deal: “Building on burgeoning trade ties between North and East Africa, this merger unifies the leading B2B players in both regions, establishing an unmatched platform for serving communities across the continent. 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.”
In addition to strengthening its core e-commerce operations—now profitable in the majority of markets—the company has also seen strong performance significantly from its private label products, which drive over 10% of total e-commerce sales. These products, including essential goods like cooking oil, rice, and tomato paste, are central to new cross-border sourcing initiatives aimed at increasing intra-African trade within the combined group.
Read also: MaxAB and Wasoko Engage in Merger Talks To Form A Strong Alliance.
The success of this merger sets a new standard for scaling businesses across Africa, also showcasing the potential for world-class tech companies to emerge from the continent. As Belal El-Megharbel aptly puts it, “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.”
This merger not only cements Wasoko and MaxAB’s dominance in the African e-commerce sector but also represents a significant step toward realizing the full potential of Africa’s informal retail market, fostering greater intra-African trade, and building a thriving digital economy.
