How Wasoko, MaxAB's tech merger is reshaping Africa's B2B fintech landscape

Wasoko and MaxAB have completed a $230 million deal, marking one of Africa's largest tech mergers. This landmark transaction combines the networks of over 450,000 B2B informal retailers and reaches 65 million consumers spanning Kenya, Tanzania, Rwanda, Egypt, and Morocco. The merger aims to transform the platform into a multi-vertical ecosystem offering e-commerce, digital services, e-payments, and credit financing. The co-CEOs of both companies, Daniel Yu and Belal El-Magrahbel, shed light on the challenges, synergies, and future prospects following this mega-deal. Belal emphasized the importance of understanding and respecting different organizational cultures to ensure a smooth integration process. They highlighted the lack of significant business changes due to shared challenges across the African continent. Daniel focused on unlocking intra-Africa trade, leveraging the expanded footprint to source and distribute goods efficiently between regions. The executives discussed the fintech expansion, showcasing new solutions like digital financial services and credit financing, targeting small-medium enterprises. They outlined a strategic rollout plan across markets to drive adoption among users. The merger bolsters MaxAB's foothold in Egypt and Morocco, enabling innovative supply chain and fintech solutions. Belal highlighted the rapid diversification and the ability to onboard FMCGs efficiently, boosting distribution across the continent. Daniel highlighted the hyper-local approach in Kenya and shared plans for replicating success in new markets, leveraging operational models tailored for different city sizes. The CEOs discussed market-specific strategies, emphasizing diversification to mitigate risks amid market volatility. They projected substantial revenue growth in all markets, particularly with a focus on expanding financial services. Addressing cybersecurity concerns, Daniel highlighted their robust tech team and AI-driven security measures to safeguard against cyber risks. The regulatory landscape was addressed, with a focus on aligning FinTech offerings with the needs and strategies of central banks and regulators in each market to ensure scalable and compliant solutions. The executives expressed confidence in delivering world-class returns for investors while building a pioneering B2B platform that sets a new standard in African tech innovation.