Kenyan e-commerce firm Wasoko and Egyptian counterpart MaxAB completed an all-stock merger, creating a firm that will sell essentials to more than 450 000 merchants in eight African countries.
The move provides a single platform for both firms’ customers to access digital finance and physical goods and services in Kenya, Tanzania, Rwanda, Egypt and Morocco.
The combined company will have Africa’s largest network of informal retailers connected to more than 65 million consumers, Wasoko CEO Daniel Yu and MaxAB head Belal El-Megharbel said in an interview. They will serve as co-CEOs of the entity that has yet to be named.
The immediate plan after the merger is scaling “aggressively”, and unlocking cross-border trade in Africa and providing financial services including loans, El-Megharbel said.
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The company is actively seeking opportunities to expand into other markets in Africa and the Middle East through additional transactions.
The two CEOs see the company going public in the future, though this isn’t on the horizon imminently. “Right now, our focus is on building the most profitable, successful business as possible,” Yu said.
Combined, MaxAB and Wasoko have raised US$230-million from investors. The company expects its revenue to more than double by year-end. — Ruth Olurounbi, (c) 2024 Bloomberg LP