After a significant delay, a Kenyan B2B e-commerce platform, Wasoko, has successfully concluded an all-stock merger with Egypt’s MaxAB. The newly merged entity will undergo a rebranding process with a new name yet to be disclosed by the company.
The co-founders and CEOs of Wasoko and MaxAB, Daniel Yu and Belal El-Megharbel, will jointly lead the merged entity as co-CEOs. They will work alongside existing investors like Silver Lake and Tiger Global on the company’s board of directors.
Wasoko and MaxAB have nearly equal stakes in the combined entity, as confirmed by Yu, dismissing claims that MaxAB holds a controlling interest.
The merger aims to establish a dominant player in the competitive B2B e-commerce sector, reflecting investor interest in consolidation. With substantial funding from investors like Tiger Global, Impact Engine, and the University of Chicago, Wasoko and MaxAB, valued at $625 million and having raised over $230 million, are poised for growth.
The merger, structured as an equity consideration, will see existing shareholders receiving shares in the new entity. Despite a delay in finalizing the deal, the new entity is set to leverage MaxAB’s strong presence as a B2B beverage supplier in North Africa.
The headquarters of the new entity will be in Cairo, with plans to operate initially in five countries—Kenya, Tanzania, Rwanda, Egypt, and Morocco. Following the merger, the entity will encompass 450,000 merchants serving 65 million consumers, without any anticipated job cuts.
The integration of Wasoko and MaxAB’s technologies and operations was completed within 60 days, with preference given to MaxAB’s systems, as confirmed by former Wasoko employees.
Early-bird tickets for the Moonshot Conference are now available. Secure your spot and explore the growing lineup of speakers at the conference!
