Wasoko and MaxAB have completed a historic $230 million deal representing Africa’s largest tech merger. The new merger links over 450,000 B2B informal retailers under a new umbrella, with a 65-million consumer base across Kenya, Tanzania, Rwanda, Egypt, and Morocco.
The merger seeks to create a multi-vertical ecosystem where customers can enjoy e-commerce, digital services, e-payments, and credit financing opportunities. Eight months after the deal’s first announcement, Wasoko and MaxAB’s merger completion appears poised to raise the bar in Africa’s tech space.
Formerly Sokowatch, Wasoko helped retailers restock products via a mobile app with free same-day delivery. However, the platform goes beyond assisting retail outlets to purchase goods from producers and middlemen at competitive prices to provide adequate financing through a proprietary credit scoring program.
Wasoko, which operated across Kenya, Tanzania, and Rwanda, will now spread its tentacles to North Africa, thanks to MaxAB’s e-commerce operations in the Middle East and North Africa. MaxAB had allowed underserved merchants and mom-and-pop shops in Egypt and Morocco to thrive, increase revenues, and enjoy a higher standard of living.
Additionally, MaxAB offered an e-payments service that enables local merchants to accept payments from their customers, alongside LAAS, a B2C e-commerce shipment service for retail outlets.
How Africa’s Latest Tech Bubble Emerged
Africa’s latest bubble didn’t materialize without its hurdles. Regulatory challenges posed the biggest concern for the teams as both organizations had to pass legal checkpoints across the multiple nations involved. Expectedly, either part also had to undergo internal restructuring of operations across the new unified entity.
Another significant complication involved navigating finances in a volatile economic climate. Global financial market realities, including inflation and cautious investment trends, toughened the process of securing adequate funds for the project.
Despite these obstacles, both startups demonstrated sufficient alignment toward achieving their bottom line. Going forward, the new entity seeks to leverage its expanded reach and operational strength to enhance Africa’s supply chain efficiency.
Speaking about the deal, Daniel Yu, Co-CEO at Wasoko and MaxAB, comments that the contract “unifies the leading B2B players in both regions,” and establishes “an unmatched platform for serving communities across the continent.” Meanwhile, MaxAB’s former Boss Belal EL-Megharbel believes “this merger proves that massive, world-class tech companies can be built in Africa for Africa.”
The impacts and progress of this merger on the industry will easily be a headline topic for the coming months and years, with expectations that it will become a pivotal player in shaping the future of B2B e-commerce across the continent.
