New post Need visibility? Apply for a FREE post for your Startup.  Apply Here

Startups

African E-commerce rivals – Wasoko and MaxAB – announce merger

1 Mins read

Two leading African e-commerce companies, Wasoko and MaxAB, have agreed to a landmark merger deal aiming to form the largest digital retail platform across the continent.

The Kenyan and Egyptian startups together serve over 450,000 small informal retailers and millions of consumers buying essential goods like food, household items and personal care products. Their merger as equals combines operations in 8 African countries.

MaxAB, founded in Egypt, dominates the North African market working with mom-and-pop stores. Wasoko began in Kenya and now operates in East and Southern Africa. Together they hope to accelerate pan-African e-commerce growth.

The deal terms remain private. But Wasoko recently raised $125 million while MaxAB added $40 million in funding rounds last year before merger talks began.

Both companies offer digital solutions helping connect consumer goods suppliers to neighborhood kiosks and stands in communities lacking formal retail infrastructure. Their apps and financing help local merchants restock and grow.

This allows us to properly build something pan-African in e-commerce for the first time. Crossing these regional divides is something that we are perfectly positioned for,” Wasoko CEO, Daniel Yu, said.

MaxAB’s CEO Belal El-Megharbel described combining their operations and network reach as able to “truly unlock the potential of Africa’s informal retail sector.”

The two fast-growing companies have seen revenues spike 30% this year as demand for delivered essentials booms. According to executives, both companies’ path to profitability should accelerate via shared capabilities across geographies.

The merger also faced some investor pressure. Wasoko underwent layoffs and market exits trying to cut losses, while MaxAB sought emergency funding to stay afloat according to sources. Now, their partnership aims to solidify operations, as the founders plan an extended expansion push after stabilizing the business.

Read also: Flutterwave strengthens its executive team with new hires

Other African e-commerce ventures like Jumia have struggled with profitability. But MaxAB and Wasoko officials see a ripe opportunity with informal merchants in largely untapped markets.

Joining forces multiplies their scale and resources to try bringing modern digital retail to more Africans relying on neighborhood shops for everyday necessities.

Don’t miss any tech news ever!

We don’t spam! Read our privacy policy for more info.

915 posts

About author
When I'm not reading about tech, I'm writing about it, or thinking about the next weird food combinations to try. I do all these with my headphones plugged in, and a sticky note on my computer with the words: "The galaxy needs saving, Star Lord."
Articles
Related posts
Startups

Uber-backed Moove acquires Brazilian mobility startup - Kovi - to fuel global expansion

1 Mins read
Nigerian fintech startup, Moove, has acquired Brazilian car rental company Kovi in an all-share deal. The acquisition propels Moove’s annual revenue to…
Startups

Gates-Backed i3 to Invest $1.6m in 15 African Health Startups

1 Mins read
Investing in Innovation Africa (i3), a Pan-African initiative backed by the Gates Foundation and major pharmaceutical companies, has announced a $1.6 million…
Startups

South African fintech - Stitch - acquires ExiPay; to bridge online-offline payment gap

1 Mins read
South African payments infrastructure company Stitch has acquired ExiPay, a move that marks a significant expansion into in-person payment solutions. The acquisition,…
Newsletter Subscription

🤞 Don’t miss any update!

We don’t spam! Read more in our privacy policy

Join our Telegram channel here - t.me/TechpadiAfrica

Leave a Reply

×
ArticleForeign startupsRandom

Formless Garners $2.2M In Pre-Seed Funding Round