After months of negotiation and careful planning, Wasoko and MaxAB , two of Africas prominent B2B e-commerce startups, have officially completed their merger.
This all-stock transaction, touted as Africas largest tech merger and first announced in Q4 2023, has established a formidable pan-African platform that aims to transform the USD 600 B informal retail sector across Africa. The merger marks a significant milestone for the continents B2B e-commerce sector and comes amidst a tumultuous period for the industry, with consolidation emerging as a lifeline for many startups.
However, the vision driving this merger extends far beyond just e-commerce, with both companies setting their sights on building a multi-vertical ecosystem that includes fintech, digital services, and other diversified services as critical components of their future growth.
A Merger of Scale and SynergyThe integration of the two prominent players brings together a vast network of over 450,000 merchants across key markets such as Kenya, Tanzania, Rwanda, Egypt, and Morocco, connecting them to more than 65 million consumers. But the merger of Wasoko, the East African leader in B2B e-commerce named Africas fastest-growing company in 2022, and MaxAB, the dominant player in North Africa, was far from straightforward.
According to Wasoko Founder Daniel Yu (now Co-CEO of the newly merged entity along with MaxAB Founder Belal El-Megharbel), integrating the two companies, at times, involved a level of complexity that was underestimated at the outset.
