Afrigather After a four-month delay, Wasoko, a Kenyan B2B e-commerce platform, has accomplished an all-stock merger with Egypt’s MaxAB. The merged entity can have a brand new title, which the corporate declined to share, citing a rebranding course of which can quickly start.
Daniel Yu and Belal El-Megharbel, the co-founders and CEOs of Wasoko and MaxAB, will collectively lead the merged entity as co-CEOs. They will even serve alongside current buyers, together with Silver Lake and Tiger World, on the corporate’s board of administrators.
Wasoko and MaxAB contributed practically equal stakes to the mixed entity, Yu instructed TechCabal on a name, dismissing earlier claims that MaxAB has a controlling curiosity.
“MaxAB and Wasoko have a reasonably near 50-50 shareholding,” Yu stated.
The merger, seen as an try and create a class king within the contested B2B e-commerce sector, indicators investor willingness to see consolidation. Wasoko (final valued at $625 million) and MaxAB had raised over $230 million from buyers like Tiger World, Impression Engine, and the College of Chicago.
TechCabal reported in December 2023 that the deal is structured as an fairness consideration, which suggests current shareholders will obtain shares within the new firm. First introduced in December 2023, the deal was anticipated to be finalised in April 2024. Wasoko declined to supply specifics in regards to the delay because of the merger’s “delicate” nature.
The brand new entity will capitalise on MaxAB’s place as a number one B2B beverage provider to a community of small retailers all through North Africa.
Whereas Cairo will function the headquarters, there are not any plans for job cuts since Wasoko made 100 duplicated roles redundant in December 2023.
The brand new entity will initially function in 5 international locations—Kenya, Tanzania, Rwanda, Egypt, and Morocco. Wasoko was in Zambia, Uganda, and Zanzibar however closed store in these markets in March 2024. The brand new entity can have 450,000 retailers serving 65 million customers.
The combination of Wasoko and MaxAB’s tech and operations was accomplished in 60 days, the corporate claimed. Former Wasoko workers instructed TechCabal in January 2024 that MaxAB’s programs have been most well-liked, as MaxAB had additionally introduced its employees from Egypt for the mixing train.
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