Two of Africa’s most prominent e-commerce companies, Wasoko and MaxAB, announced today that they have signed preliminary merger terms to create a combined entity to drive the transformation of Africa’s informal retail sector.
- This merger-of-equals will bolster the growth and development of the e-commerce pioneers to establish the most successful digital retail platform on the continent.
- Merger marks the largest of its kind in the tech sector on the continent in recent times.
- The combined entity will have a collective customer base of over 450,000 merchants serving 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.
The merged entity is now present in eight African countries: Egypt, Morocco, Kenya, Tanzania, Rwanda, Uganda, Zambia and DR Congo. Since the start of 2023, Wasoko’s monthly revenue has increased by 30% and its Sub-Saharan African network of merchants has risen by over 20%, according to a statement by the two companies announcing the merger.
“As we embark on our next stage of expansion, our merger with MaxAB 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.
- MaxAB has grown its monthly active merchant network by 25% and its fintech transaction volumes by over 50%.
- Both companies have also made significant strides towards profitability, which will be accelerated through the combination of elite talent and capabilities across markets.
- Wasoko and MaxAB also expect to collaborate deeply on enabling greater intra-Africa trade between their markets and implementing new technologies on a Pan-African scale.
Through the shared pan-African vision of both startups to address major challenges inhibiting the development of Africa’s $850bn informal retail sector, this collaboration will empower the combined companies to further strengthen its infrastructure while harnessing cross-market synergies.
