African B2B E-Commerce Giants Wasoko, MaxAB Complete Merger
TLDR
- Wasoko and MaxAB, two major B2B e-commerce platforms in Africa, merge to dominate the $600 billion informal retail market.
- The merger involved 16 subsidiaries across multiple countries and attracted investments from prominent names like Tiger Global and Silver Lake.
- The combined entity, operating in five markets, boasts Africa's largest network of B2B informal retailers with over 450,000 merchants.
Two of Africa's largest B2B e-commerce platforms, Kenya-based Wasoko and Egypt-based MaxAB, have finalized their merger, TechCrunch reports, creating a combined entity to capture Africa's $600 billion informal retail market.
This development follows eight months of negotiations, beginning in December, and integrates 16 subsidiaries across multiple countries. Notable investors like Tiger Global, Silver Lake, Avenir, and British International Investment had collectively invested over $240 million in the companies before the merger.
Wasoko and MaxAB have scaled back their operations from eight to five markets—Egypt, Kenya, Morocco, Rwanda, and Tanzania—reflecting broader trends in the B2B e-commerce space amid funding challenges.
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Key Takeaways
The merger between Wasoko and MaxAB represents a significant consolidation in the continent's informal retail sector. With backing from major investors, the newly combined entity is positioned as a leader in Africa’s informal retail market. Despite scaling back operations in response to industry-wide challenges, the merger strengthens the companies' market presence with the continent’s largest B2B informal retailer network, with over 450,000 merchants, although active users number around 200,000. The retrenchment to five key markets also reflects a strategic focus on sustainable growth in a challenging funding environment.
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