African B2B e-commerce startups Wasoko and MaxAB have officially completed the largest tech merger in Africa’s history following the signing of preliminary terms in Q4 2023.
Conducted as an all-stock transaction, the deal leverages both companies’ extensive regional expertise to establish a Pan-African platform for communities to access essential digital and physical goods. For MaxAB and Wasoko, the transaction also marks a significant evolution from B2B e-commerce to a multi-vertical ecosystem serving Africa’s $600 billion informal retail sector.
The combined company’s retailer network has enabled the launch of new fintech business units beyond e-commerce, including e-payments, credit financing, and digital services top-ups, overtaking B2B e-commerce in Egypt, the group’s largest market. Key metrics of note include:
- Digital services alone have generated over $180 million in annualized sales to 7 million consumers through 40,000 retailers.
- In the past year, the newly-formed entity has disbursed over $20 million worth of financing to retailers with repayment rates exceeding 99%.
- The combined company’s core B2B e-commerce service is now profitable in most markets, with the platform’s private label products driving over 10% of total e-commerce sales.
- Overall company revenue is projected to more than double year-on-year by December 2024.
The combined company will be led by Daniel Yu, CEO of Wasoko, and Belal El-Megharbel, CEO of MaxAB, who will serve as Co-CEOs and company board directors alongside existing Wasoko and MaxAB investors. For Africa’s tech ecosystem, the close of a merger on this scale is the first of its kind, which both founders hope will set the standard for growing businesses at scale on the continent.
Details
Wasoko and MaxAB boast the continent’s largest network of B2B informal retailers at over 450,000 merchants, connecting the platform to more than 65 million consumers across Egypt, Morocco, Kenya, Tanzania, and Rwanda.
The deal is Africa’s largest tech merger by total funds raised, with both companies securing a combined total of $230 million.
The combined company will be led by Daniel Yu, CEO of Wasoko, and Belal El-Megharbel, CEO of MaxAB, who will serve as Co-CEOs and company board directors alongside existing Wasoko and MaxAB investors.
As part of the restructuring, the combined company will expand beyond just an e-commerce platform to a fully comprehensive B2B ecosystem, providing e-commerce, digital services top-ups, e-payments, and credit financing all in one unified app.
The platform’s fintech verticals have rapidly overtaken B2B e-commerce in Egypt, the group’s largest market, with digital services alone generating over $180 million in annualized sales to 7 million consumers through 40,000 retailers.
In the past year, the newly formed entity has disbursed over $20 million worth of financing to retailers, with repayment rates exceeding 99%.
The combined company’s core B2B e-commerce service is now profitable in the majority of markets, with the platform’s own private label products driving over 10% of total e-commerce sales.
Wasoko and MaxAB bring together an impressive list of investors, including Silver Lake, Tiger Global, ADQ (Abu Dhabi Development Holding Company), Avenir, BECO Capital, Quona Capital, 4DX Ventures, BII (British International Investment), IFC (International Finance Corporation), VNV Global, Flourish Ventures, and many others.
