Tech

Egypt’s MaxAB completes landmark merger with Kenya’s Wasoko group

Published

3 weeks ago

August 28, 2024

Two of Africa’s B2B e-commerce companies, Egypt’s MaxAB and Kenya’s Wasoko, have wrapped up a tech merger following the signing of preliminary terms in Q4 2023.

Wasako, formerly known as Sokowatch, had in March 2022 closed a $125 million Series B equity round which enabled retailers to restock products for their businesses at any time via mobile app with free same-day delivery, and is accessed across Kenya, Tanzania, Rwanda, Uganda, Zambia and the Democratic Republic of Congo (DRC).

On its part, MaxAB, which creates a market for local underserved merchants and mom-and-pop shops in Egypt and Morocco to grow, increase their revenues and enhance their own quality of life, had closed its own $40m Series B equity round in October 2022.

The merger talks had been ongoing since December’s amid challenging times for fundraising in Africa and with the final closure, the two companies say they are announcing and by the “merger-of-equals”, which they said would bolster the growth and development of the pair to establish the most successful digital retail platform on the continent.

A joint statement issued on Wednesday states that the landmark deal has now been completed.

“Conducted as an all-stock transaction, it establishes a truly pan-African platform for communities to access essential digital and physical goods, marking Wasoko and MaxAB’s evoluty yayion from B2B e-commerce companies to a multi-vertical ecosystem for Africa’s US$600 billion informal retail sector.

“Leveraging Wasoko and MaxAB’s extensive, hyper-localised online and offline expertise across Kenya, Tanzania, Rwanda, Egypt and Morocco, the newly-formed entity boasts the continent’s largest network of B2B informal retailers of more than 450,000 merchants, connected to more than 65 million consumers.

“The two companies have successfully integrated their tech stacks and operations, with the combined company’s unrivalled retailer network and offerings enabling the launch of new business units beyond e-commerce and the development of AI systems.

“Building on burgeoning trade ties between North and East Africa, this deal unifies the leading B2B players in both regions, establishing an unmatched platform for serving communities across the continent. Through our integrated technology stack, our expanded Pan-African reach uniquely positions us to offer the best products and services from across Africa at maximum accessibility and affordability, supercharging our growth beyond what either company could achieve independently.

“This merger proves that massive, world-class tech companies can be built in Africa for Africa. As first-movers, we fully embrace our responsibility to drive the development of a mature and thriving ecosystem, building foundational infrastructure that will empower future companies to fully unlock Africa’s vast economic potential in years to come.”

Related Topics:Featured MaxAB Merger Tech Wasako

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Tech

Nigerian fintech PalmPay launches USSD Service for users without internet connection

Published

2 hours ago

September 16, 2024

Isaac Dachen

Nigerian payment fintech startup, PalmPay, has announced the launch of its USSD code aimed at offering additional service to Nigerians even without internet connectivity.

The new service, according to the Managing Director of PalmPay, Chika Nwosu, the USSD Service is
an additional way for customers to manage their finances without the need for internet connectivity.

“With the PalmPay USSD code, customers can now perform a wide range of banking transactions by dialing *861# from their mobile phones,” Nwosu said in a statement on Monday.

“At PalmPay, we aim to bridge the gap in digital access, and the introduction of our USSD service aligns with that mission. Our platform ensures seamless connectivity for our users.” he said.

“In addition, our USSD platform comes with a security feature which allows our customers to remotely freeze their accounts in case their phone is lost or stolen, providing an extra layer of protection to safeguard their finances.”

Launched in 2019, PalmPay which has been operating under a Mobile Money Operator (MMO) license issued by the Central Bank of Nigeria (CBN), the fintech has pioneered a model that provides financial services such as money transfers, bill payments, credit services and savings via a one-stop-shop financial ‘superapp’.

The MD added that customers without access to smartphones are able to make transactions via a nationwide network of over 500,000 Mobile Money Agents.

“The addition of a USSD access point is designed to further enhance the accessibility and convenience of the platform for consumers in a market where data network outages are common.

Nwosu, further emphasized the company’s commitment to financial inclusion

“PalmPay has achieved significant milestones in Nigeria, reaching over 30 million registered users on its app and connecting 1.1 million businesses through its network of mobile money agents and merchant.

“The company has been a key driver of financial inclusion in Nigeria, with a third of PalmPay users reporting that they opened their first-ever financial account through the platform.”

Tech

Egyptian fintech Paymob extends Series B funding to $72m as It expands across MENA

Published

1 day ago

September 15, 2024

Isaac Dachen

Egypt-based payment fintech, Paymob, has announced successfully raising an additional $22 million in a Series B extension, bringing its total Series B funding to $72 million which will see it pursue its growth strategy at home and in the wider MENA region.

The extension round was led by EBRD Venture Capital with participation from Endeavor Catalyst while existing investors PayPal Ventures, BII, FMO, A15, Nclude and Helios Digital Ventures also participated in the round.

Co-founder and CEO of the Paymob, Islam Shawky, who made the announcement, said the extension round follows Paymob’s continued profitability in its core market of Egypt, having recorded 6x revenue growth since the initial Series B funding in Q2 2022.

“We are very excited by our strong prospects in Egypt – where we hold a market-leading position – and the significant traction experienced in the UAE since launching operations there.

“This funding will help Paymob to fully capitalize on the momentum in our established markets, as we accelerate our GCC rollout. We remain committed to creating a cutting-edge infrastructure enabling SMEs across the region to thrive in the digital economy and are proud of our continued impact,” Shawky said.

The payment platform which was founded in 2015 by Shawky, Alain El Hajj and Mostafa Menessy, is an infrastructure technology enabler providing payment solutions to empower digital financial service providers through mobile wallet technology.

According to its profile on its website, the fintech’s omnichannel gateway offers more than 50 payment solutions and empowers close to 350,000 merchants with access to innovative financial services. It has expanded to the United Arab Emirates (UAE), Saudi Arabia and Oman.