Report: B2B eCommerce Platforms MaxAB and Wasoko in Merger Talks

MaxAB, an Egyptian B2B eCommerce startup, and Wasoko, a Kenya-based eCommerce player, are reportedly in talks to merge their operations.

The talks are ongoing and a deal has not been finalized, TechCrunch reported Friday (Dec. 22).

Neither MaxAB nor Wasoko immediately replied to PYMNTS’ request for comment.

The merger comes at a time when B2B eCommerce companies in Africa are facing funding scarcity and scaling back their operations, according to the report.

MaxAB operates in Egypt and Morocco, serving a network of traditional retailers in the food and grocery supply chain, the report said. Wasoko has operations in Tanzania, Rwanda, Uganda and Zambia, catering to more than 200,000 informal retailers across these markets.

Both MaxAB and Wasoko have encountered financial challenges and were actively exploring mergers with other eCommerce platforms, per the report. However, given their shared investors, a partnership between MaxAB and Wasoko seemed more logical.

Both companies have a presence in their respective regions and have been experiencing growth in revenues, the report said.

The potential merger between MaxAB and Wasoko could have an impact on the African B2B eCommerce landscape, as the companies are two of the largest players among the continent’s B2B platforms, per the report.

A growing number of B2B eCommerce solutions have stepped up to meet the unique needs of Africa’s businesses, PYMNTS reported in October 2022. These firms aim to use the B2B marketplace model to address the continent’s supply chain inefficiencies by removing unnecessary middlemen and connecting buyers to a greater range of more affordable products.

When announcing the expansion of its B2B eCommerce marketplace to Zambia in May, Wasoko said it would provide small retailers with access to an affordable range of products, same-day delivery and working capital financing.

MaxAB offers merchants a tech-enabled order and inventory platform complete with a network of warehouses and a fleet of vehicles that can deliver food products in less than a day, MaxAB Co-founder and CEO Belal el Megharbel told PYMNTS in an interview posted in November 2022.

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