The merger of two of Africa’s largest B2B e-commerce platforms, Wasoko and MaxAB, has been successfully finalized, marking a significant step towards creating a multi-vertical ecosystem for Africa’s informal retail sector valued at $600 billion. The all-stock transaction represents an evolution from traditional B2B e-commerce to a more comprehensive platform.
Discussions about merging Kenyan-based Wasoko and Egypt-based MaxAB started in December, eventually leading to the integration of 16 subsidiaries across multiple countries. This eight-month process is in line with global merger timelines and sets a precedent for future consolidations in the region.
Both companies have a history of serving small retailers in Africa, with a focus on financial services in addition to their core distribution activities. Despite industry challenges, the merger positions the combined entity with the largest network of B2B informal retailers in Africa, totaling over 450,000 merchants.
The newly formed company emphasizes profitability over gross merchandise value (GMV), indicating a strategic shift towards sustainable business practices. By leveraging their fintech offerings, Wasoko and MaxAB aim to enhance their margins and attract investors who value diversified revenue streams.
With an extensive presence in markets like Egypt, the combined entity has seen promising results from its fintech services, generating substantial revenue and facilitating merchant financing. The roadmap includes further expansion of these services to drive revenue growth in the coming years.
The merger has necessitated operational adjustments, particularly in central back-office roles, to streamline functions and capitalize on synergies. The focus is now on enhancing the cross-border procurement business and exploring opportunities for international expansion and product sourcing.
By aligning their operations and optimizing costs, the combined entity aims to achieve profitability in all markets while capitalizing on their extensive network and valuable services. The strategic move towards diversification and efficiency sets the stage for sustainable growth in the competitive B2B e-commerce landscape.
Looking ahead, the merged company plans to focus on expanding its fintech offerings, improving operational efficiency, and driving revenue growth across its pan-African footprint. By staying agile and responsive to market dynamics, Wasoko and MaxAB are poised to navigate the evolving landscape of B2B commerce in Africa with confidence.
