Two of Africa’s B2B e-commerce pioneers confirm their expected merger

The new company, which is yet to be named, serves the large informal retail sector (mom-and-pop stores) and intends to focus on five countries: Kenya, Tanzania, Rwanda, Egypt and Morocco. 

According to statement released by the new venture, this will give them access to a combined network of 450,000 informal retailers who serve around 65-million consumers. However, a report by the online technology publication Tech Crunch claims that probably only around 200,000 of these small merchants are currently active. 

Both Wasoko and MaxAB started out as traditional B2B e-commerce platforms, essentially simplifying and digitising the supply chain between major good manufacturers/suppliers and street-level merchants.  

Subsequently, they have grown their offering to include e-payments, credit financing and other digital services to the informal sector. The statement calls this a transformation “into a multi-vertical ecosystem”. 

Integration completed within 60 days 

“Following detailed diligence and planning, Wasoko and MaxAB successfully integrated the tech stacks and operations of both companies in under 60 days,” the new merged entity says in its statement. 

“The combined company’s retailer network and offerings have enabled the launch of new business units beyond e-commerce and the development of AI systems powering pricing, product selection, demand prediction and route optimisation through an archive of high-quality, localised data stemming from millions of transactions across its individual markets.  

“Independent business units now handle fintech offerings including e-payments, credit financing and digital services top-ups in addition to e-commerce through a unified app with extensive services for African informal retailers.” 

The combined company has over 4,000 employees and will be led by Daniel Yu, CEO of Wasoko, and Belal El-Megharbel, CEO of MaxAB. They will serve as Co-CEOs and company board directors alongside existing Wasoko and MaxAB investors. The two companies have attracted several international and African-based investors. 

Says Yu: “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.”