Two of Africa’s leading B2B e-commerce companies, Kenya’s Wasoko and Egypt’s MaxAB, have officially completed a historic merger, creating the continent’s largest tech merger to date. The companies had initially agreed on preliminary terms in Q4 2023.
Wasoko, formerly known as Sokowatch, raised $125 million in a Series B equity round in March 2022. The company’s platform allows retailers to restock their businesses via a mobile app, offering free same-day delivery. Wasoko operates across multiple African nations, including Kenya, Tanzania, Rwanda, Uganda, Zambia, and the Democratic Republic of Congo (DRC).
MaxAB, established in 2018, serves underserved merchants and small shops in Egypt and Morocco. The company aims to help these local businesses grow, increase their revenues, and improve their quality of life. In October 2022, MaxAB secured $40 million in a pre-Series B equity round.
In December, Disrupt Africa reported that the two companies had announced a “merger-of-equals” to navigate the challenging fundraising environment in Africa. The merger aimed to accelerate the growth of both companies, creating the continent’s leading digital retail platform.
Now finalized, the merger was conducted as an all-stock transaction, resulting in the creation of a pan-African platform that offers both digital and physical goods. This milestone marks Wasoko and MaxAB’s evolution from traditional B2B e-commerce companies into a multi-vertical ecosystem serving Africa’s $600 billion informal retail sector.
Leveraging their combined expertise in Kenya, Tanzania, Rwanda, Egypt, and Morocco, the newly formed entity boasts the continent’s largest network of informal retailers, connecting over 450,000 merchants to more than 65 million consumers.
The integration of their technology stacks and operations has enabled the launch of new business units beyond e-commerce, including fintech services such as e-payments, credit financing, and digital top-ups. Their unified app now offers a comprehensive suite of services for African informal retailers. Additionally, the company’s AI-driven systems enhance pricing, product selection, demand forecasting, and route optimization, powered by an extensive archive of localized data from millions of transactions.
With a combined workforce of over 4,000 employees, the company will be co-led by Daniel Yu, CEO of Wasoko, and Belal El-Megharbel, CEO of MaxAB, who will serve as co-CEOs and board directors alongside existing investors from both companies.
“This merger represents a unification of the leading B2B players in North and East Africa, creating an unparalleled platform to serve communities across the continent,” said Daniel Yu. “Our integrated technology stack and expanded reach position us to offer the best products and services from across Africa, maximizing accessibility and affordability, and driving growth beyond what either company could achieve alone.”
Belal El-Megharbel added, “This merger demonstrates that world-class tech companies can be built in Africa, for Africa. As pioneers, we are committed to developing a mature ecosystem and building the infrastructure that will enable future companies to unlock Africa’s vast economic potential.”
