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

Zambian neobank fintech Lupiya set to launch new debit card

Published

7 hours ago

September 18, 2024

Isaac Dachen

Zambian neobank fintech, Lupiya, has entered into a partnership with leading enabler of digital commerce across Africa and the Middle East, Network International, to launch a new debit card.

The fintech which is active in Zambia and Tanzania and has plans to expand into other African countries is an AI-driven neobank driving financial inclusion through its online lending and digital payments platform.

Muchu Kaingu, CEO of Lupiya Pay, who made the announcement in a statement, said the new debit card was e-commerce enabled, together with 3D Secure and tokenisation.

“This will help diversify Lupiya’s value proposition to include not only simplified lending, but also digital payments to its existing and growing new customer base,” he said.

“At Lupiya, we are driven by the mission to revolutionise financial inclusion across Africa. Our partnership with Network International represents a significant leap forward in providing secure, accessible, and innovative digital financial solutions.

“By launching an e-commerce enabled debit card with 3D Secure and tokenisation, we are empowering individuals and businesses to participate in the digital economy more effectively.

“This collaboration is a testament to our commitment to delivering cutting-edge technology that enhances convenience and security for our customers, while driving economic growth and financial independence across the continent,” Kaingu stated.

He added that the platform leverages alternative data and machine learning models to assess creditworthiness, enabling individuals and businesses traditionally excluded by banks to access both credit and secure payment services.

‘Lupiya offers a range of financial products, including personal loans, SME financing, and digital payments, and is now launching a debit card in partnership with Network, a digital payments company that serves governments, banks, public sector companies, fintechs, and merchants of all sizes. The company serves over 250 financial institutions and 130,000 merchants in more than 50 countries,” said Kaingu.

Tech

Five African female entrepreneurs make Visa’s She’s Next Programme final list

Published

1 day ago

September 17, 2024

Isaac Dachen

Five female African entrepreneurs have been pencilled down as finalists for the 2024 edition of the “Visa’s She’s Next Programme”, an initiative dedicated to empowering women entrepreneurs across the continent.

Lineshree Moodley, Country Manager at Visa South Africa, said the She’s Next Programme, which is in partnership with Absa, is aimed at providing women-owned small and medium-sized enterprises (SMEs) with the resources, tools, and mentorship needed to thrive in today’s dynamic business environment.

“The programme aims to support women-owned small businesses through funding, training, and mentorship,” Moodley said in a statement.

She stated that the five finalists who will compete for the grand prize of over $56,000 worth of prize money are InoBiodiesel, Moli & Mela, Diamond Days, eFama App, and HVAC Partners.

“We are delighted to announce the finalists for this year’s She’s Next Programme. These remarkable women exemplify the spirit of entrepreneurship and innovation that is vital for Africa’s economic future.

“At Visa, we are committed to supporting women-owned businesses by providing them with the tools and opportunities they need to succeed. Our partnership with Absa has been instrumental in expanding the reach and impact of this programme, and we are excited to see the incredible journeys of our finalists unfold. The winner of the 2024 She’s Next programme will be announced on September 19.

“In addition to the top five, another 25 SMEs will participate in an exclusively tailored capacity building and mentorship programme in partnership with Absa to further support and empower women entrepreneurs to take their businesses to the next level,” she added.