African e-commerce giants Wasoko and MaxAB announce “Merger of Equals” for digital retail dominance

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Wasoko and MaxAB announce "Merger-of-Equals" for digital retail dominance

Two leading African e-commerce enterprises, Wasoko and MaxAB, declared today the formalization of preliminary merger agreements. Termed a “merger-of-equals,” this alliance is poised to enhance the progress and advancement of these e-commerce trailblazers, aspiring to establish the most prosperous digital retail platform across the continent.

This merger stands out as a historic event, being the largest of its kind within the African tech ecosystem in recent memory. The significance of this collaboration is underscored by its potential to reshape the technological landscape and dynamics of the digital commerce sphere in Africa.

According to Kenyanwallstreet, the resultant combined entity is anticipated to amass a substantial customer base, exceeding 450,000 merchants, collectively catering to an estimated 65+ million consumers.

“As a combined company, we can truly unlock the potential of Africa’s informal retail sector across a variety of technology-enabled services in e-commerce, fintech and logistics,” MaxAB CEO Belal El-Megharbel, said in a statement.

Expanded presence and impressive growth post-merger

Following the merger, the combined entity has extended its footprint into eight African nations: Egypt, Morocco, Kenya, Tanzania, Rwanda, Uganda, Zambia, and DR Congo.

A joint statement from the companies revealed substantial post-merger successes, with Wasoko experiencing a 30% surge in monthly revenue since the commencement of 2023. Additionally, the Sub-Saharan African network of merchants affiliated with the company has witnessed an increase of over 20%, further highlighting the positive outcomes resulting from this collaboration.

Wasoko and MaxAB announce "Merger-of-Equals" for digital retail dominance

“As we embark on our next stage of expansion, our merger underscores our commitment to empowering businesses and connecting consumers across all parts of the African continent with an affordable and diverse range of essential products,” Wasoko CEO Daniel Yu added.

Read More: Egypt’s MNT-Halan raises $400M to become Africa’s latest unicorn

Collaborative ventures and Pan-African vision

MaxAB’s significant milestones, including a robust 25% expansion in its monthly active merchant network and an impressive 50% surge in fintech transaction volumes, pave the way for an era of accelerated growth. Simultaneously, Wasoko and MaxAB, both making strides towards profitability, anticipate that the fusion of their talent and capabilities across markets will propel them further on the path to financial sustainability.

This collaboration transcends individual achievements, as both companies unite forces to address formidable challenges hindering the progress of Africa’s $850 billion informal retail sector.

Their partnership not only aims to fortify the infrastructure of the combined entities but also seeks to harness growth across diverse markets. The shared pan-African vision of these startups reflects a steadfast commitment to overcoming obstacles and nurturing development in the dynamic landscape of Africa’s retail sector.

Read More: Kenyan e-commerce platform Sokowatch raises $125m, rebrands as Wasoko


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