Egyptian B2B e-commerce startup, MaxAB, is currently in discussions with Wasoko, an e-commerce player based in Zanzibar that operates in Kenya, Tanzania, Rwanda, Uganda, and Zambia, regarding a potential merger.
According to a report by TechCrunch, the talks are ongoing, and a final agreement has not yet been reached.
This potential merger takes place amidst a trend of B2B e-commerce companies in Africa scaling back operations due to funding challenges. Wasoko recently implemented significant layoffs in Kenya, affecting a considerable number of employees, including some executives.
Earlier in the year, the company exited the markets of Senegal and Ivory Coast and closed hubs, including one in Mombasa, Kenya, as part of a strategy to achieve profitability.
The merger discussions are reported to be investor-led, with Wasoko having received only $30 million by the time the talks began. In contrast, MaxAB, a food and grocery B2B e-commerce and distribution platform serving traditional retailers in Egypt and Morocco, has successfully raised over $100 million.
Surprisingly, the potential merger was considered unlikely last year, as MaxAB was focused on post-pre-Series B plans, emphasizing the utilization of its network and relationships with local and multinational suppliers for full distribution in Morocco and expansion into Saudi Arabia by the end of the year.
On the other hand, Wasoko’s goals included exploring expansion into West Africa and diversifying its product offerings to include point-of-sale merchant systems, bill payments, and social commerce.
