Regarding mergers and acquisitions in Africa’s tech sector, the union of Wasoko and MaxAB is highly notable. These two B2B e-commerce firms, operating in Kenya and Egypt, have come together to establish a strong presence in the African B2B e-commerce industry.
Discussions about an all-stock merger began in December 2023. Initially slated for completion in March 2024, the process was marked by layoffs, legal disputes, and delays, attributed to sensitive issues by Daniel Yu, the CEO of Wasoko.
Mergers usually take around six months, but complications can extend negotiations to over a year. Nonetheless, both companies are now aiming to move past their disagreements. Yu and MaxAB’s CEO, Belal El-Megharbel, will lead as co-CEOs in the merged entity, which is structured as a 50-50 merger.
This merger will leverage the strengths of each company, combining Wasoko’s East African merchant network with MaxAB’s North African B2B beverage supply expertise. The unified entity, pending a new name, will operate across East, Central, and Northern Africa.
Through this collaboration, the merged entity will expand its product and service offerings to a broader customer base.
Wasoko-MaxAB’s focus will include securing additional funding, optimizing costs in unprofitable markets, and enhancing their buy-now-pay-later (BNPL) service.
B2B e-commerce in Africa is challenging, with companies like Copia Global facing closures this year. However, with their combined strengths, Yu and El-Megharbel are optimistic about overcoming challenges and advancing in the competitive B2B e-commerce landscape.