A landmark move for African tech has recently occurred after B2B e-commerce leaders Wasoko and MaxAB completed the continent’s largest-ever tech merger. The all-stock transaction united Wasoko and MaxAB, creating a formidable platform serving over 450,000 informal retailers across Kenya, Tanzania, Rwanda, Egypt, and Morocco.
The newly formed entity aims to revolutionize Africa’s $600 billion informal retail sector by evolving from traditional B2B e-commerce into a multi-vertical ecosystem. This expansion includes the launch of new business units beyond e-commerce, leveraging AI systems for pricing, product selection, demand prediction, and route optimization.
Daniel Yu, Co-CEO of the merged company, emphasized the strategic importance of the deal, stating, “Building on burgeoning trade ties between North and East Africa, this deal unifies the leading B2B players in both regions, establishing an unmatched platform for serving communities across the continent. Through our integrated technology stack, our expanded Pan-African reach uniquely positions us to offer the best products and services from across Africa at maximum accessibility and affordability, supercharging our growth beyond what either company could achieve independently.”
The merger has already shown promising results. In Egypt, the company’s largest market, fintech verticals have outpaced B2B e-commerce. Digital services alone generate over $180 million in annualized sales to 7 million consumers through 40,000 retailers. The credit financing vertical has disbursed over $20 million to retailers with a 99% repayment rate, demonstrating the potential of fintech within the company’s broader strategy.
Wasoko and MaxAB’s e-commerce operations are now profitable in most markets, with private label products accounting for over 10% of total e-commerce sales. These products, including essentials like cooking oil, rice, and tomato paste, are central to new cross-border sourcing initiatives aimed at boosting intra-Africa trade.
Belal El-Megharbel, Co-CEO, sees the merger as a milestone for African tech. In his words, “This merger proves that massive, world-class tech companies can be built in Africa for Africa. As first-movers, we fully embrace our responsibility to drive the development of a mature and thriving ecosystem, building foundational infrastructure that will empower future companies to fully unlock Africa’s vast economic potential in years to come.”
The merged entity, with over 4,000 employees, will be led by Yu and El-Megharbel as co-CEOs. Key shareholders include prominent global investors such as Silver Lake, Tiger Global, and British International Investment, alongside regional venture capitalists.
