AFRICA – MaxAB, a B2B platform that connects retailers of food and daily essentials to suppliers across Egypt and Morocco has merged with Kenyan-based e-commerce Wasoko, creating a Pan-African platform designed to serve the continent’s expansive informal retail sector.
In what is being hailed as the largest tech merger in Africa’s history, the newly formed entity now connects over 450,000 informal retailers to more than 65 million consumers across Kenya, Tanzania, Rwanda, Egypt, and Morocco.
This merger has integrated the technology stacks and operations of both companies in under 60 days, leading to the creation of independent business units that handle a range of services beyond e-commerce.
These units include fintech offerings such as e-payments, credit financing, and digital services top-ups, all accessible through a unified application aimed at enhancing the operational capabilities of informal retailers.
The merger, finalized after the signing of preliminary terms in Q4 2023, signals a significant evolution for both companies as they transition from traditional e-commerce operations to a multi-vertical digital services ecosystem.
One of the major benefits of this alliance is the increased regional integration, facilitating intra-African trade by streamlining the movement of goods between North and East Africa.
Leveraging advanced AI algorithms trained on localized data, the company optimizes delivery routes, ensuring faster, more efficient service for retailers.
Daniel Yu, Co-CEO of Wasoko and MaxAB, stated “The merger unifies the leading B2B players in both regions, establishing an unmatched platform for serving communities across the continent.”
Yu further noted that the expanded 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.
Together, MaxAB and Wasoko are poised to revolutionize the accessibility and affordability of essential goods, empowering retailers to expand and better serve their communities.
This merger sets a strong foundation for Africa’s economic growth and demonstrates the potential for world-class tech innovation emerging from the continent.
The release also highlights that the fintech verticals, particularly in Egypt, have quickly outpaced the company’s e-commerce operations, generating over US$180 million in annualized sales to 7 million consumers through 40,000 retailers.
Additionally, the credit financing unit has disbursed over US$20 million in loans to retailers, with a repayment rate exceeding 99%.
Wasoko projects that fintech revenue will more than double by the end of December 2024, emphasizing the significant impact of these services within the company’s broader strategy.
According to Wasoko, its B2B e-commerce operations are now profitable in most of its markets, with private label products, such as cooking oil, rice, and tomato paste, accounting for over 10% of total sales.
These products are central to new cross-border sourcing initiatives aimed at boosting intra-African trade within the group.
Industry analysts expect the merger to set a new benchmark for tech mergers in Africa, potentially unlocking the continent’s vast economic potential by providing the foundational infrastructure needed for future businesses to scale.
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