Tech

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

Published

2 months 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

Kenya’s auto-tech startup BuuPass expands system to new operators

Published

10 hours ago

October 14, 2024

Isaac Dachen

Kenyan auto-tech startup, BuuPass, has announced the expansion of its Bus Management System (BMS) to new operators in a bid to further enhance transparency and operational efficiency for bus companies in the country.

Founded in 2016 by the duo of Sonia Kabra and Wyclife Omondi, BuuPass has grown from a B2B2C mobility marketplace to become a leader in digital ticketing and transportation management solutions that enables users to search, compare, and book travel tickets via web, app, or USSD, while its SaaS platform helps bus operators manage their operations, inventory, and sales.

“What we are witnessing is nothing short of a digital renaissance in bus operations. Our Bus Management Service isn’t just a tool—it’s the future of this industry,” said Kabra, who doubles as the CEO of the company.

“So far, BuuPass has sold over 16 million travel tickets and generated over US$100 million in total value of goods sold, while it has also taken part in the Google for Startups Accelerator Africa and been backed by the Google for Startups Black Founders Fund. It also acquired counterpart QuickPass earlier this year.

“The BuuPass BMS is designed to address the most pressing challenges faced by bus operators. At its core, the system enhances transparency and control by providing real-time visibility into all aspects of operations, from ticket sales to route performance.

“Among the newly enrolled operators are Abuya, Abandu, Shoreline, and Bin Ibrahim, serving crucial routes such as Nairobi-Garissa, Nairobi-Moyale, Nairobi-Busia, Mombasa-Busia, and Mombasa-Kitui.

“To ensure smooth integration, BuuPass provides these operators with scanning devices, computers, and digital printers, along with comprehensive training for their staff on system usage,” she said.

Tech

Tanzanian fintech Nala secures $40m funding to boost expansion

Published

1 day ago

October 13, 2024

Isaac Dachen

Tanzanian payments platform, Nala, has announced securing $40 million in Series A funding from several global investment firms such as San Francisco-based VC firm, Acrew Capital, DST Global and Amplo, as well as other angel investors, which it says will be used for its global expansion and to strengthen its payment systems across Africa.

The startup which has its headquarters in Kenya, is a fintech that enables seamless money transfers from the UK, US, and the EU to Kenya, Uganda, Tanzania, Rwanda, and Ghana.

Nala’s founder and CEO, Benjamin Fernandes, who announced the new funding in a statement, said it is coming on the heels of a $10 million seed round in 2022 and will further improve the reliability of its African payment systems by establishing its own payment infrastructure.

Fernandes highlighted how the new capital would fast-track the company’s global expansion efforts, focusing on its Nala Money App and its business-to-business (B2B) payment platform, Rafiki API.

“This funding allows us to go beyond remittances and scale beyond Africa, building a comprehensive payments ecosystem. We’re reinvesting to enhance our infrastructure, ensuring affordable, reliable payments for everyone,” Fernandes said.

“With our own payment rails and the growth of our B2B platform Rafiki, we’re not just talking about change – we’re building it. We have bold, ambitious plans, so stay tuned for the next couple of years.

“For the first time, we are profitable and cash flow positive. Our transaction volume has surged 34 times over the last 20 months,” he added.

He noted that the company has expanded from a seven-member team to nearly 100 employees, and is serving nearly 500,000 customers globally.