Sylvia Duruson
Africa’s tech sector, Wasoko and MaxAB have joined forces to create the continent’s largest digital platform serving the informal retail market. This merger, completed through an all-stock transaction, marks a pivotal moment in the evolution of B2B e-commerce across Africa.
The newly formed entity boasts an impressive network of over 450,000 informal retailers, connecting them to more than 65 million consumers across Kenya, Tanzania, Rwanda, Egypt, and Morocco. This extensive reach positions the company as a dominant player in Africa’s $600 billion informal retail sector.
The integration process, completed in less than two months, has yielded remarkable results. By combining their tech stacks and operations, Wasoko and MaxAB have expanded beyond traditional e-commerce. The merger has facilitated the launch of new business units and the development of advanced AI systems. These systems leverage a vast repository of localized data to optimize pricing, product selection, demand prediction, and route planning.
A key feature of the merged platform is its unified app, which offers a wide range of services tailored for African informal retailers. The company has established independent business units to handle various fintech offerings, including e-payments, credit financing, and digital services top-ups.
In Egypt, the platform’s largest market, fintech verticals have quickly surpassed B2B e-commerce in terms of growth. Digital services alone generate over $180 million in annualized sales, reaching 7 million consumers through 40,000 retailers. The credit financing vertical has also shown promising results, disbursing over $20 million in loans with an impressive repayment rate exceeding 99%.
The merged company’s leadership structure reflects the collaborative nature of this venture. Daniel Yu, formerly CEO of Wasoko, and Belal El-Megharbel, previously CEO of MaxAB, will serve as Co-CEOs and board directors. They are supported by a diverse group of investors, including prominent growth investors and venture capital firms.
The B2B e-commerce service continues to thrive, with core operations now profitable in most markets. Private label products, including essential goods like cooking oil and rice, account for over 10% of total e-commerce sales. The company is exploring cross-border sourcing initiatives to boost intra-Africa trade within the group.
This merger represents a significant milestone in Africa’s tech landscape. It demonstrates the potential for building world-class tech companies on the continent and sets a new standard for scaling businesses across borders. The combined expertise and resources of Wasoko and MaxAB position the new entity to drive innovation and growth in Africa’s digital retail sector for years to come.
As the company continues to expand its services and reach, it aims to empower Africa’s informal retailers and contribute to the development of a robust, technology-driven ecosystem across the continent. This merger not only transforms the B2B e-commerce landscape but also lays the foundation for future tech innovations in Africa’s rapidly evolving digital economy.
