After a four-month delay, Kenyan B2B e-commerce platform Wasoko has successfully merged with Egypt’s MaxAB in an all-stock transaction. The newly formed entity, whose name remains undisclosed pending a rebranding process, will be jointly led by Daniel Yu and Belal El-Megharbel, co-founders and CEOs of Wasoko and MaxAB respectively. Both will also serve on the company’s board of directors, alongside existing investors such as Silver Lake and Tiger Global.
The merger, viewed as a strategic move to dominate the competitive B2B e-commerce sector, saw both Wasoko and MaxAB contributing nearly equal stakes to the combined entity. Dispelling earlier reports of MaxAB having a controlling interest, Daniel Yu clarified that the shareholding between the two companies is close to 50-50.
Wasoko and MaxAB had collectively raised over $230 million from investors, with Wasoko last valued at $625 million. The merger was first announced in December 2023, structured as an equity consideration deal where existing shareholders will receive shares in the new company. Although the deal was initially set to close by April 2024, the finalisation was delayed, with Wasoko citing the sensitive nature of the merger as the reason for withholding specifics.
The new entity will capitalise on MaxAB’s strong position as a leading B2B beverage supplier in North Africa. The merged company will have its headquarters in Cairo, and there are currently no plans for job cuts following the redundancy of 100 roles at Wasoko in December 2023.
Operating across five countries—Kenya, Tanzania, Rwanda, Egypt, and Morocco—the new entity will serve 450,000 merchants and 65 million consumers. Wasoko, however, had exited markets in Zambia, Uganda, and Zanzibar in March 2024.
The integration of Wasoko and MaxAB’s technologies and operations was completed in just 60 days. Former Wasoko employees have noted a preference for MaxAB’s systems during the integration process, with MaxAB even bringing in its staff from Egypt to assist with the transition.