Wasoko in Kenya and MaxAB in Egypt, two of the most well-known B2B e-commerce companies in Africa, have announced that they have signed preliminary merger terms to form a combined company that will spearhead the transformation of the continent’s informal retail industry.
In March 2022, Wasoko, formerly known as Sokowatch, completed a US $125 million Series B equity round. Retailers can use the mobile app to replenish their inventory at any time, anywhere in Kenya, Tanzania, Rwanda, Uganda, Zambia, and the Democratic Republic of the Congo (DRC), with free same-day delivery.
In contrast, MaxAB was established in 2018 and enables mom-and-pop stores and local underprivileged retailers in Egypt and Morocco to expand, boost sales, and improve their own standard of living.
In October 2022, the company closed a pre-Series B equity round of US $40 million.
The two businesses have now announced a “merger-of-equals,” which they said would support the growth and development of the two to establish the most successful digital retail platform on the continent, amid difficult times for fundraising in Africa. What the new company will be called and whether the “merger of equals” entails a 50/50 share split have not yet been disclosed.
“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,” said MaxAB CEO Belal El-Megharbel.
“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 realising 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,” said Wasoko CEO Daniel Yu.
