Wasoko and MaxAB, two big players in African B2B e-commerce, have finally merged after eight months of planning.
This deal, which is being called Africa's largest tech merger, comes at a crucial time as both companies look to strengthen their positions in the continent’s $600 billion informal retail market.
Wasoko, which recently saw its valuation dip to $260 million after a key investor markdown, and MaxAB, a leader in North Africa, are now joining forces to serve over 450,000 merchants across major markets like Egypt, Kenya, Morocco, Rwanda, and Tanzania.
To streamline things, they’re cutting about 10% of their overlapping workforce and focusing on smoothly integrating their operations and tech—a process they wrapped up in just 60 days.
The merger isn’t just about getting bigger—it’s about getting smarter. They’re expanding into financial services like inventory financing and digital payments, which both companies believe will be key to boosting profits.
According to an interview with TechCrunch, the companies' co-CEOs pointed out that this shift towards financial services will also help enhance cross-border trade, like sourcing tea directly from Kenya to Egypt, cutting out the middlemen and saving costs.
With over $200 million raised before the merger, Wasoko and MaxAB are well-positioned to take on the challenges of the African market. By tapping into their vast merchant networks and focusing on efficiency, they’re aiming to redefine how small retailers across Africa do business.
