Abstract

The case “The MaxAB-Wasoko Merger – Can it Unlock the Potential in Africa’s B2B Retail Tech Sector?” discusses the factors that drove the merger and evaluates whether the merged entity will continue to dominate the African retail tech landscape. The case starts out with a detailed history of the two startups – Egypt-based MaxAB and Kenya-based Wasoko – two of Africa’s largest B2B e-commerce platforms based on metrics such as GMV and merchant base. They had disrupted the traditional supply chain model in Africa by operating fully integrated B2B e-commerce platforms. The companies had managed their own warehousing and logistics while enabling millions of small retailers to order inventory online through their platforms. The case delves into the changes that swept across the African startup landscape in 2023 which tightened funding, forcing startups such as MaxAB and Wasoko to look for exits or consolidation. The MaxAB-Wasoko merger took considerable time to fructify and the case documents the events that preceded and followed the merger in August 2024, including layoffs, executive departures, and exit from certain markets. The case then documents MaxAB-Wasoko’s foray into the fintech space in 2025 in search of growth and profitability. The tough funding environment, along with high operational costs and low margins, placed constraints on the capital that MaxAB-Wasoko had at its disposal. What strategies should Belal El-Megharbel, CEO of MaxAB-Wasoko, use to continue growing in Africa’s B2B retail tech sector?

Learning Objectives

The case is structured to achieve the following Learning Objectives:

• Examine how entrepreneurial firms use technology-enabled business models to disrupt established value chains
• Understand the various types of mergers and the economic rationale for mergers
• Analyze the challenges faced by a merged entity in managing operations and addressing thin profit margins
• Devise growth strategies for companies operating in tough economic conditions

Keywords

Merger; Funding Environment; PESTLE Analysis; M&A Framework; e-Business; Competitive Advantage; Types of Mergers; Synergy; B2B e-commerce; Retail Buying; Logistics Management; Sales & Distribution; Startups; Technology