Egyptian B2B e-commerce startup MaxAB and Wasoko, a Kenya-based e-commerce company with operations in Tanzania, Rwanda, Uganda and Zambia, are in talks to merge, TechCrunch exclusively learns from multiple sources. I got it. They said negotiations are still ongoing and the agreement has not yet been finalized.
The merger talks come as African B2B e-commerce companies continue to downsize due to lack of funding. Wasoko is no exception. The company recently carried out its largest ever layoffs, affecting most of its employees in Kenya, including some executives. Earlier this year, the company exited the Senegal and Ivory Coast markets and closed locations, including one in Mombasa, Kenya, as it sought profitability.
Additionally, our sources say Wasoko closed a $125 million round last year, with the funds scheduled to be released upon reaching set milestones. TechCrunch has learned that the company received just $30 million when merger talks, said to be investor-led, began. Wasoko has raised a Series B round from institutional investors including Tiger Global and Avenir at a post-money valuation of $625 million.
Like Wasoko, MaxABa food and grocery B2B e-commerce and distribution platform serving a network of traditional retailers in Egypt and Morocco, has raised over $100 million in funding, including DisruptAD, BII, Sources said the company is in talks with existing investors to raise a bridge round this year, including $55 million in Series A and $40 million in pre-Series B from Silverlake.
MaxAB is the largest player in the B2B retail and e-commerce market in Egypt and North Africa. The company acquired YC-backed Waystocap to expand in Morocco, and the supposed threat Capiter shut down amid a conflict between its founders and investors.
Last year, a merger between MaxAB and Wasoko, both asset-heavy B2B e-commerce startups, seemed unlikely. In discussions last year with MaxAB CEO Belal El Meghaber and Wasoko CEO Daniel Yu, there was no indication that they were considering any form of merger. MaxAB’s post-pre-Series B plans are focused on leveraging its network and relationships with local and multinational suppliers, with the aim of full distribution in Morocco and expansion into Saudi Arabia by the end of the year. Meanwhile, Wasoko was looking to expand in West Africa, aiming to expand its product offering to include point-of-sale systems, bill payments, and social commerce.
MaxAB does not have a presence in Saudi Arabia, at least according to its website, while Wasoko has expanded into two West African markets, Ivory Coast and Senegal, to complement its operations in East Africa’s core markets of Kenya, Tanzania and Uganda. Not doing business. And Rwanda. His eight-year-old B2B e-commerce company has since expanded to Zambia and the Democratic Republic of Congo.
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Source: techcrunch.com
