Grace Ashiru
Wasoko, the Kenyan e-commerce firm supported by investors like Tiger Global and 4DX Ventures, has denied reports that it has shut down its operations in Rwanda, just weeks after halting activities in Zanzibar and pausing operations in Uganda and Zambia.
In an email to TechCabal, the company announced that it is currently expanding its team in Rwanda, along with Tanzania and Kenya. In Rwanda, Wasoko is on the lookout for partnership and procurement associates. The company has also listed three positions available in Kenya and four in Tanzania, which includes openings for two procurement managers.
“In November 2023, we inaugurated a new warehouse in Rwanda and are actively recruiting for several new roles to bolster our commitment to the region,” Wasoko communicated via email.
Furthermore, Wasoko disclosed that it has engaged new suppliers such as Movit, a cosmetics manufacturer, and Oxi, a detergent distributor, for its operations in Rwanda. The B2B platform, which is in the process of merging with Egypt’s MaxAB, is also preparing for the arrival of its inaugural shipment of Egyptian products for distribution in Rwanda. This shipment is poised to initiate Wasoko’s new Pan-African sourcing strategy, leveraging MaxAB’s extensive network in North Africa.
Wasoko recently withdrew from Senegal and Côte d’Ivoire, continuing its operations in Kenya, Tanzania, Rwanda, and the Democratic Republic of Congo. Its prospective partner, MaxAB, operates in Egypt and Morocco, primarily connecting retailers with beverage suppliers.
The integration of Wasoko and MaxAB’s operations has already commenced in Nairobi, with the entire process anticipated to span a year. According to the organizations, they are progressing as planned within this timeline.
An individual familiar with the matter informed TechCabal that MaxAB is overturning several of Wasoko’s earlier decisions. This includes the reopening of some of Wasoko’s distribution centers in Kenya and extending services to major retailers.
“Wasoko, once valued at $260 million, is currently embroiled in a legal dispute with nine former employees concerning severance pay and stock options.
The company, preferring to avoid court proceedings, opted to settle with one month’s salary. However, the former employees are demanding a year’s severance and a fixed-price redemption of their shares. Additionally, they have accused Wasoko of advertising the positions that were deemed redundant without offering them the opportunity to apply for these roles during consultative meetings,” a court document obtained by TechCabal revealed.
“Unlike Wasoko, which specifically targeted small retailers and avoided businesses like small supermarkets, MaxAB does not impose such restrictions and aims to cater to its suppliers regardless of their size.”
The subsequent court hearing is set for May 9.
