Wasoko and MaxAB, two of the largest e-commerce companies in Africa, officially announced that they had agreed to preliminary merger conditions, creating a merged company that will spearhead the continent’s informal retail sector’s transformation.
The two companies are merging on an equal basis, which will help the pioneers of online shopping expand and evolve into the leading digital retail platform in Africa.
With the largest tech merger in Africa, Wasoko and MaxAB will reach over 450,000 merchants in eight African countries: Egypt, Morocco, Kenya, Tanzania, Rwanda, Uganda, Zambia, and the Democratic Republic of the Congo. These merchants will provide essential goods to over 65 million consumers in their local communities.
Wasoko has had a 30% increase in monthly sales and an over 20% increase in its network of merchants in Sub-Saharan Africa since the beginning of 2023, demonstrating consistent traction for both companies.
In a similar vein, MaxAB has seen a 25% increase in its active merchant network and a 50% increase in its fintech transaction volumes.
The merger of both entities’ top employees and market-spanning capabilities would hasten their path to profitability, which both have already achieved considerable progress towards.
Wasoko and MaxAB hope to work closely together after the merger to facilitate more trade within Africa and to apply innovative technology on a pan-African scale.
The core competencies of Wasoko and MaxAB, which include B2B e-commerce, integrated payment solutions, merchant financing, and proprietary logistics operations, are the driving forces behind their industry leadership.
The two entrepreneurs have the same goal of helping Africa’s $850 billion informal retail industry grow, and by working together, they may achieve just that while also taking advantage of synergies in other markets.
Speaking on the merger, MaxAB CEO Belal El-Megharbel, stated: “This merger is the culmination of developing excellent teams, a lot of hard work over the years, and a commitment to innovative solutions adding up to our unique offering to retailers. I am proud of what we have achieved as MaxAB, and even more excited for our future together with Wasoko. As a combined company, we can truly unlock the potential of Africa’s informal retail sector across a variety of technology-enabled services in e-commerce, fintech, and logistics. As we embark on this new chapter, I am confident that the natural synergies between us will empower our customers and partners across the continent.”
Wasoko CEO Daniel Yu added: “When I launched Wasoko in Kenya in 2016, it was with the promise of becoming a truly pan-African company, and this merger is the boldest step we’ve taken towards realizing that goal while reflecting on my personal history developing the initial concept behind Wasoko during my time spent in Egypt over a decade ago. As we embark on our next stage of expansion, our merger with MaxAB underscores our commitment to empowering businesses and connecting consumers across all parts of the African continent with an affordable and diverse range of essential products. We are excited to go further together on our shared vision, bolstered by complementary strengths while building the foundation for a remarkable partnership.”
After the merger—which is still pending internal approvals and other typical closing conditions—Belal and Daniel will both continue as full-time senior executives in the company. They are dedicated to working together to shape the company’s future.
The merged company has access to more capital and more time to turn a profit and explore new opportunities thanks to the merger.
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Chefaa, an Egyptian e-health startup, secures $5.25 million in funding
Mtor, an Egyptian marketplace for auto parts, has raised $2.8 million in pre-seed funding.
Egyptian e-commerce startup WayUp has raised a seed round of funding
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