Wasoko and MaxAB, two e-commerce platforms, have announced their merger to form a new entity aimed at supporting the retail sector in Africa, a sector valued at $600 billion.
Previously, both Wasoko and MaxAB operated by distributing products to small shops across several African countries. However, due to economic challenges and changes in startup funding in Africa, both companies have now scaled down their operations to just five countries: Egypt, Kenya, Morocco, Rwanda, and Tanzania.
The new entity will bring together a large network of informal retailers, totaling over 450,000 merchants, with around 200,000 of them being active. The new entity aims to achieve profitability by expanding financial technology services, which offer higher returns compared to traditional e-commerce.
Egypt is the largest market for the new entity, where financial services achieved sales exceeding $180 million last year. Additionally, the two platforms provided commercial financing of over $20 million, with a repayment rate exceeding 99%. The new entity aims to double its revenue from financial services by the end of 2024.
