In a strategic move to broaden their reach across Africa, Kenyan e-commerce company Wasoko and Egyptian counterpart MaxAB have merged in an all-stock transaction. This merger creates a formidable entity that will cater to over 450,000 merchants across eight African countries, significantly enhancing their market presence.
The merger brings together the strengths of both companies, providing a unified platform where customers in Kenya, Tanzania, Rwanda, Egypt, and Morocco can access a comprehensive range of digital financial services alongside physical goods. This integration is set to streamline operations and offer merchants and consumers a more robust and efficient service.
With this merger, the newly formed company will establish Africa’s most extensive network of informal retailers, serving more than 65 million consumers across the continent. Wasoko CEO Daniel Yu and MaxAB CEO Belal El-Megharbel will jointly lead the merged entity as co-CEOs, leveraging their combined expertise to drive growth and innovation.
The company’s immediate goal is aggressive scaling, with a focus on unlocking cross-border trade within Africa and expanding financial services, including offering loans to merchants. This strategy aims to capitalize on the growing demand for e-commerce and digital financial solutions in the region. The merged entity is also eyeing further expansion into other African and Middle Eastern markets, potentially through additional mergers or acquisitions.
While both CEOs envision taking the company public in the future, the current priority is to build a highly profitable and successful business. “Our focus right now is on establishing the most successful and profitable company possible,” Yu stated.
To date, the combined entity has raised $230 million from investors, providing a strong financial foundation for its ambitious growth plans. The company anticipates that its revenue will more than double by the end of the year, reflecting the significant growth potential of the African e-commerce market.
