Two of Africa’s most prominent B2B e-commerce companies, Kenya’s Wasoko and Egypt’s MaxAB, have announced that they have signed preliminary terms of merger to come together as a combined entity to drive the transformation of Africa’s informal retail sector.
Formerly known as Sokowatch, Wasoko closed a $125 million Series B equity round in March 2022. It allows retailers to restock products for their businesses at any time via a mobile app with free same-day delivery and is accessible across Kenya, Tanzania, Rwanda, Uganda, Zambia and the Democratic Republic of Congo (DRC ).
MaxAB, meanwhile, was founded in 2018 and enables local merchants and mom-and-pop shops in Egypt and Morocco to grow, increase their revenue and improve their own quality of life. The company closed its own $40M equity round ahead of Series B in October 2022.
Amid difficult times for fundraising in Africa, the two companies have now announced a “merger of equals”, which they said will boost the pair’s growth and development to create the most successful digital retail platform on the continent. It has not yet been announced what this new entity will be called, or whether the “merger of equals” is a 50/50 stock split or otherwise.
“This merger is the culmination of developing great teams, a lot of hard work over the years and a commitment to innovative solutions that add up to our unique offering to retailers. I am proud of what we have achieved as MaxAB, and even more excited about our future together with Wasoko. As a combined company, we can truly unlock the potential of Africa’s informal retail sector through 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,” said MaxAB CEO Belal El-Megharbel.
“When I started 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 have taken towards achieving that goal, while reflecting my personal story, developing the original idea behind from Wasoko during my time in Egypt a decade ago. As we embark on our next phase of expansion, our merger with MaxAB underscores our commitment to empower businesses and connect consumers in all parts of the African continent with an affordable and diverse range of essential products. We are excited to go further together in our shared vision, enhanced by complementary strengths, while building the foundation for a remarkable partnership,” said Wasoko CEO Daniel Yu.