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African B2B e-commerce giants, Wasoko, MaxAB announce merger

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Two of Africa’s most prominent B2B e-commerce giants, Kenya’s Wasoko and Egypt’s MaxAB, have announced a preliminary merger that will see them come together as one entity to drive the transformation of the informal retail sector in the continent.

The preliminary merger agreement, according to MaxAB CEO, Belal El-Megharbel, is a crucial first step in the process that will allow the two startups iron out the details and determine whether or not they are a good fit.

El-Megharbel, in a statement on Friday, said the agreement was non-binding and only serves as a blueprint for the final merger agreement.

“It has not yet been announced what that new entity will be called, or whether the merger of equals is a 50/50 share split or otherwise,” El-Megharbel said.

“This merger is the culmination of developing excellent teams, a lot of hard work over the years and a commitment to innovative solutions adding up to our unique offering to retailers.

“I am proud of what we have achieved as MaxAB, and even more excited for our future together with Wasoko. As a combined company, we can truly unlock the potential of Africa’s informal retail sector across a variety of technology-enabled services in e-commerce, fintech and logistics.

“As we embark on this new chapter, I am confident that the natural synergies between us will empower our customers and partners across the continent”, he added.

Also speaking on the deal, Daniel Yu, Wasoko’s CEO, said:

“As we embark on our next stage of expansion, our merger with MaxAB underscores our commitment to empowering businesses and connecting consumers across all parts of the African continent with an affordable and diverse range of essential products.

“When I launched Wasoko in Kenya in 2016, it was with the promise of becoming a truly pan-African company, and this merger is the boldest step we’ve taken towards realising that goal while reflecting my personal history developing the initial concept behind Wasoko during my time spent in Egypt over a decade ago.

“We are excited to go further together on our shared vision, bolstered by complementary strengths while building the foundation for a remarkable partnership”.

Wasako, which was previously known as Sokowatch, had, in March 2022, closed a $125 million Series B equity round that enabled retailers to restock products for their businesses at any time via mobile app with free same-day delivery.

It is accessible across Kenya, Tanzania, Rwanda, Uganda, Zambia and the Democratic Republic of Congo (DRC).

On the other hand, MaxAB, which was founded in 2018, also closed its own $40 million pre-Series B equity round in October 2022, which allowed local underserved merchants and mom-and-pop shops in Egypt and Morocco to grow, increase their revenues, and enhance their own quality of life.

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Nigeria’s food delivery startup Chowdeck raises $2.5m to optimise operations

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Nigeria’s on-demand food delivery startup, Chowdeck, has announced securing the sum of $2.5 million in seed funding that will enable it optimise operations and support its expansion plans into more cities across the country.

Femi Aluko, the CEO and co-founder of Chowdeck who made the announcement on Thursday, said the funds which came from investors including Y Combinator, Goodwater Capital, FounderX Ventures, Hoaq Fund, Levare Ventures, True Culture Funds and Haleakala Ventures, will will enable the startup to double down on its market leadership in the cities they are already operating in as well as lay the groundwork for further expansion into other Nigerian cities.

“We know that Nigerians love good food, and we just want to make it as easy as possible for them to access the food they desire,” Aluko said.

Chowdeck was birthed to fulfil this purpose and we are committed to delivering truly excellent experiences for our customers, vendors and riders.

“We are pleased with the success we have achieved to date and excited to have raised these funds that will enable us to replicate that success in more parts of Nigeria, and add value to our customers, vendors, and riders in as many ways as we can,” Aluko added.

Chowdeck which was launched in Lagos in October 2021, allows customers to order meals from a variety of restaurants and have them delivered to their doorstep within 30 minutes.

A participant in the Y Combinator accelerator in 2022, Chowdeck has acquired more than 500,000 users and more than 3,000 riders, serving eight Nigerian cities including Lagos, Abuja, Ibadan, Port-Harcourt, Ilorin, Benin City, Abeokuta and Asaba.

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Tanzania’s horticultural industry gets $2.1m grant from TradeMark Africa to boost market expansion

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The Tanzanian horticultural industry has recieved a grant of $2.1 million from TradeMark Africa to enable it boost its market expansion.

According to TradeMark Africa’s Regional Director for East and Central Africa, Ms. Monica Hangi, the Tanzania Horticultural Association (TAHA) and TradeMark signed a grant agreement to initiate the Phase II of their collaborative project

“The Phase I of the project which ran from January 2019 to June 2023, yielded tangible results, with 27,854 farmers (35% women, 65% men, and 40% youth) linked to markets, and approximately 50,000 tons of horticultural products worth roughly TZS 42.7 billion (US$18.3 million) sold.

“This second phase, backed by a $2.1 million (Tzs 5.4billion) grant from TMA funded by the Foreign, Commonwealth & Development Office (FCDO), Norway, and Ireland, spans three years and focuses on advancing market access, promoting sustainable trade practices, and empowering local farmers in the horticultural industry,” she said in a statement on Wednesday.

Hangi noted that despite notable successes recorded with the first phase, the sector continues to face substantial challenges, including limited financing access, climate change impacts, and inadequate market information, which could hinder growth.

“These challenges necessitate a united approach from both the government and private sector, incorporating policy support, research and development investment, and development sector initiatives aimed at improving market and credit access for farmers,” she said.

She added that the grant highlighted the significance of supporting the horticultural sector, particularly in mitigating unemployment among youth and women.

“Our commitment through this substantial grant is to upscale production, increase export volumes, and, consequently, job opportunities, thereby reinforcing Tanzania’s standing in the global horticultural market,” said Hangi

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