African B2B e-commerce firms Wasoko and MaxAB have completed their merger following the signing of preliminary terms in Q4 2023. The deal was conducted as an all-stock transaction and establishes a platform for communities across Africa to access essential digital and physical goods.
With over 4,000 employees, the combined company will be led by Daniel Yu, CEO of Wasoko, and Belal El-Megharbel, CEO of MaxAB, who will serve as Co-CEOs. The top management also includes the company board directors alongside existing Wasoko and MaxAB investors.
Other key shareholders of the combined company include late-stage growth investors such as Silver Lake, Tiger Global, Lunate, VNV Global, British International Investment, and Avenir Growth alongside leading regional and global venture investors such as Beco Capital, 4DX Ventures, Quona Capital, Amplo, Breyer Capital, AHL Ventures, Endure Capital, and Flourish Ventures.
The merger marks Wasoko and MaxAB’s evolution from B2B e-commerce companies to a multi-vertical ecosystem for Africa’s USD 600 billion informal retail sector. Leveraging Wasoko and MaxAB’s extensive online and offline expertise across Kenya, Tanzania, Rwanda, DRC, Egypt, and Morocco, the newly-formed entity boasts the continent’s largest network of B2B informal retailers of more than 450,000 merchants, connected to more than 65 million consumers.
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. 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.
Speaking about the announcement, Daniel Yu, Co-CEO at Wasoko and MaxAB said, “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.”