In one of Africa’s most significant tech mergers, Wasoko and MaxAB officially combined in August 2024, creating a $500 million entity aimed at revolutionizing digital commerce across the continent. The merger, initially announced in December 2023, allows the two companies to evolve beyond their B2B e-commerce roots into a multi-service digital platform.
The newly formed company will leverage its vast network of over 450,000 merchants connected to more than 65 million consumers across key markets such as Kenya, Tanzania, Rwanda, Egypt, and Morocco. The aim is to unify offerings, including e-payments, credit financing, and digital top-ups, through a super app that caters to both retailers and consumers. This merger aligns with Africa’s growing need for tech-enabled solutions, especially in its expansive informal retail sector, valued at approximately $600 billion.
Mo Elshenawy’s Role in Shaping AI and Technology at Wasoko-MaxAB
Mo Elshenawy, the President and CTO of autonomous vehicle company Cruise, has joined the new board as an independent director and technical advisor. Elshenawy will focus on scaling the company’s technological infrastructure, with a particular emphasis on artificial intelligence to enhance pricing models, route optimization, and demand prediction. His expertise is expected to help the merged entity optimize operations through millions of data points gathered from transactions across its diverse markets.
Elshenawy expressed enthusiasm for contributing to Africa’s economic growth, highlighting the merger’s potential to establish a strong global presence through its integrated technology platform.
Financial Landscape and Growth Plans
Before the merger, Wasoko and MaxAB collectively raised over $230 million in funding. However, Wasoko saw a dip in its valuation from $625 million in 2022 to $260 million in 2023 due to challenges with sales to small informal retailers. Now, with the combined entity valued at over $500 million, they aim to accelerate growth by offering seamless B2B digital services that extend far beyond e-commerce.
The merger is expected to fuel the company’s next phase of expansion, with Daniel Yu (CEO of Wasoko) and Belal El-Megharbel (CEO of MaxAB) serving as co-CEOs. Their leadership will drive efforts to establish the company as a leader in African digital commerce, supported by investments from global firms like Silver Lake, Tiger Global, and British International Investment.
This strategic consolidation not only demonstrates the potential for large-scale tech companies to thrive in Africa but also positions the merged entity as a crucial player in bridging trade between North and East Africa. The integration of AI-powered tools and a hyper-local approach signals the company’s intent to provide innovative, data-driven services to merchants and consumers alike.