Wasoko, a Kenyan B2B retail and e-commerce business led by Nairobi-based digital entrepreneur Daniel Yu, has merged with MaxAB, a game-changing move for Africa’s digital retail environment. This all-stock transaction creates the continent’s largest digital platform for the informal retail industry, signaling a watershed moment in the sector’s consolidation and cross-border expansion.
The merger, concluded in less than two months, combines Wasoko and MaxAB’s strengths, establishing the newly formed firm as a key player in Africa’s rapidly developing digital retail environment. The united business plans to use modern technologies and data-driven insights to transform operations and promote innovation across the continent.
Wasoko and MaxAB’s merger goes beyond typical e-commerce by incorporating powerful AI to improve price, product selection, demand forecasting, and route optimization. The platform provides unrivaled efficiency and value by leveraging substantial locally available data.
Over 450,000 informal sellers in Kenya, Tanzania, Rwanda, Egypt, and Morocco are connected to 65 million consumers through the new company. This places it as a leader in Africa’s $600 billion informal retail business, establishing a new bar for operational size across the continent.
Daniel Yu, Wasoko’s founder and previous CEO, and Belal El-Megharbel, MaxAB’s former CEO, will serve as co-CEOs. They are supported by notable growth investors and venture capital firms, highlighting the platform’s aggressive expansion intentions.
The merged app provides a comprehensive set of features geared specifically to African informal retailers. It has specific business units for fintech products, such as e-payments, credit finance, and digital top-ups, to meet the diversified needs of its large user base.
Wasoko has grown from connecting suppliers with retailers in Kenya’s fast-moving consumer goods market to becoming a key player in East and West Africa. The company has fulfilled 2.5 million orders for over 50,000 informal shops. In 2022, the company raised $125 million in Series-B funding, increasing its valuation to over $600 million.
Wasoko’s dedication to improving the retail ordering experience is demonstrated by its reasonable price and free same-day delivery options. The company’s strategic expansion efforts have resulted in a 500 percent increase in sales as of 2021, with intentions to enter more market categories.
This combination emphasizes Africa’s rising presence in the global IT industry, putting the combined platform at the forefront of digital retail innovation and market growth. As the continent’s largest internet platform for informal shopping, it has the potential to transform the future of trade.