Two of Africa’s most prominent e-commerce companies, Wasoko and MaxABannounced today 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.
This merger of equals will enhance the growth and development of the e-commerce pioneer to create the most successful digital retail platform on the continent.
Details
As the largest technology merger in Africa, Wasoko and MaxAB will have a collective customer base of over 450,000 merchants to serve estimated 65+ million consumers with essential goods in their local communities in eight African countries: Egypt, Morocco, Kenya, Tanzania, Rwanda, Uganda, Zambia, and DR Congo.
By The Numbers
Since the beginning of 2023, both companies have experienced steady traction with Wasoko’s monthly revenue increase by 30% and its dealer network in Sub-Saharan Africa increases over 20%.
Likewise, MaxAB has developed its monthly active merchant network by 25% and fintech transaction volumes vs over 50%. Both companies have also made significant strides toward profitability, which will be accelerated through the combination of elite talent and capabilities across markets.
Through the merger, Wasoko and MaxAB also expect to collaborate in depth to facilitate greater intra-African trade between their markets and implement new technologies on a pan-African scale.
What they say
Speaking about the merger, MaxAB CEO Belal El-Megarbel, declared: βThis 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.“
CEO of Wasoko Daniel Yu added: “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 the Wasoko during My time was spent 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, as we build the foundation for a remarkable partnership.β
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