Daniel Yu's Wasoko merges with MaxAB to form Africa’s largest informal retail platform

Timilehin Adejumobi -
Key Points
  • Wasoko and MaxAB's merger creates Africa’s largest digital platform for informal retail, integrating strengths and expanding cross-border operations
  • The all-stock deal integrates advanced AI for pricing, demand forecasting, and route optimization, revolutionizing operations in Africa’s $600-billion informal retail market.
  • Co-CEOs Daniel Yu and Belal El-Megharbel, backed by top investors, will lead the merged entity, which has a valuation exceeding $600 million.

In a transformative move for Africa’s digital retail landscape, Wasoko, the Kenyan B2B retail and e-commerce startup led by Nairobi-based digital entrepreneur Daniel Yu, has merged with MaxAB. This all-stock deal creates the continent’s largest digital platform for the informal retail market, marking a turning point in the sector's consolidation and cross-border expansion.

The merger, completed in under two months, integrates the strengths of Wasoko and MaxAB, positioning the newly formed entity as a pivotal player in Africa’s rapidly evolving digital retail ecosystem. The combined company is set to leverage advanced technologies and data-driven insights to revolutionize operations and drive innovation across the continent.

A new era for African retail

Wasoko and MaxAB's merger goes beyond traditional e-commerce, integrating advanced AI to enhance pricing, product selection, demand forecasting, and route optimization. Leveraging extensive local data, the platform offers unmatched efficiency and value.

The new company connects over 450,000 informal retailers with 65 million consumers across Kenya, Tanzania, Rwanda, Egypt, and Morocco. This positions it as a leader in Africa’s $600 billion informal retail market, setting a new standard for operational scale on the continent.

Daniel Yu, Wasoko’s founder and former CEO, and Belal El-Megharbel, MaxAB’s former CEO, will lead as Co-CEOs. They are backed by prominent growth investors and venture capital firms, underscoring the platform’s ambitious growth plans.

The unified app from this merger offers a comprehensive suite of services tailored to African informal retailers. It features dedicated business units for fintech solutions, including e-payments, credit financing, and digital top-ups, addressing the diverse needs of its vast user base.

Major expansion across East, West Africa

Since its inception in 2015, Wasoko has evolved from connecting suppliers with retailers in Kenya’s fast-moving consumer goods sector to a major player across East and West Africa. The company has fulfilled 2.5 million orders for more than 50,000 informal retailers. Its successful $125 million Series-B funding round in 2022 propelled its valuation to over $600 million.

Wasoko’s commitment to enhancing the retail ordering experience is evident in its competitive pricing and free same-day delivery offerings. The company’s strategic expansion efforts have driven a 500 percent increase in sales as of 2021, with further plans to penetrate additional market segments.

This merger underscores Africa’s burgeoning profile in the global tech arena, positioning the combined platform at the forefront of digital retail innovation and market growth. As the largest digital platform for the informal retail sector, it stands poised to reshape the future of commerce across the continent.