In an exclusive report, it has been revealed that Egyptian B2B e-commerce startup MaxAB and Wasoko, a prominent e-commerce player in East Africa, are currently engaged in discussions to merge their operations. This news comes from multiple sources and suggests that the two companies are still in the negotiation phase and have not yet finalized any agreement.
Wasoko has recently made significant changes to its operations, including conducting a round of layoffs that affected a large number of employees in Kenya, as well as some of its top executives. Additionally, the company has withdrawn from the Senegal and Ivory Coast markets, closed several hubs, and is focusing on becoming profitable.
According to sources, Wasoko had secured a $125 million funding round last year, but only received $30 million at the time merger talks began. The decision to merge is said to be investor-led, and Wasoko raised its Series B from major firms such as Tiger Global and Avenir, with a post-money valuation of $625 million.
With regard to MaxAB, the startup has raised over $100 million, including a $55 million Series A and a $40 million pre-Series B last year from DisruptAD, BII, and Silverlake. The company is reportedly in discussions with existing investors to raise a bridge round this year.
MaxAB is a major player in Egypt and North Africa’s B2B retail and e-commerce market and has made significant moves to expand its reach. This includes the acquisition of YC-backed Waystocap for its expansion into Morocco, as well as the closure of a potential competitor, Capiter, following a conflict between its founders and investors.
The details of the potential merger between MaxAB and Wasoko are still unfolding, and it remains to be seen how the two companies will navigate this significant development in the e-commerce landscape. Stay tuned for more updates as this story continues to develop.
