Africa-Press – Eswatini. Reflecting a wider transformation in Africa’s e-commerce sector, MaxAB-Wasoko, the region’s largest B2B e-commerce merger is intensifying its focus on fintech to drive profitability, especially in major markets across North and East Africa. This strategic shift comes after years of fast-paced but low-margin expansion in traditional e-commerce, as the combined company now realigns its operational focus.
The most recent signal of this shift is seen in Morocco, where MaxAB is reorganizing its local operations by scaling back e-commerce efforts to prioritize fintech growth. “Our strategic focus now is on advancing fintech services in Morocco and gearing up for the launch of our marketplace,” stated Othmane Benzakour, CEO of ABmaxCo and MaxPay, MaxAB’s Moroccan subsidiaries. “As part of this transition, we’ve chosen to reduce the pace of our e-commerce operations.”
The move reflects a larger trend within the merged entity created in 2024 through the prominent merger of Egypt’s MaxAB and Kenya’s Wasoko toward embedding financial services more deeply into its primary operations. This pivot seems aligned with a broader push for profitability, as the group works to strengthen its presence across five key African markets: Egypt, Morocco, Kenya, Rwanda, and Tanzania.
Following the merger, MaxAB-Wasoko has evolved beyond its original role as a logistics and supply chain platform for informal retailers, gradually transforming into a fintech-driven ecosystem. In Egypt, its fintech operations now generate more than $180 million in annual revenue. Over the past year, the group has issued upwards of $20 million in working capital loans to small retailers, achieving repayment rates exceeding 99%, a success attributed to its real-time credit scoring system powered by transaction data from merchants using its e-commerce platform.
“Our fintech operations in Egypt have seen over 100% growth in the past year,” noted Daniel Yu, co-CEO of MaxAB-Wasoko and founder of Wasoko. “That’s why, for the foreseeable future, our top priority is scaling these financial services across the markets where we already operate.”
This shift emerges against a hard truth: e-commerce, though expanding rapidly, remains a high-cost, low-margin business. MaxAB-Wasoko’s e-commerce operations are already profitable in three of its five active markets, yet scaling that profitability across the continent remains a steep challenge. Fintech, by contrast, delivers more predictable revenue streams, stronger unit economics, and significantly higher margin potential.
Fatura Acquisition Signals Fintech-Centric Growth
MaxAB-Wasoko’s acquisition of Egyptian fintech-powered marketplace Fatura reinforces its shift toward financial services. With a network of 626 wholesalers operating in 16 cities including five new regional branches, Fatura provides the group with instant market access and a well-established fintech backbone.
Supported by EFG Finance, a branch of regional giant EFG Holding—the acquisition grants EFG a board seat at MaxAB-Wasoko, strengthening the group’s financial base and affirming its long-term bet on embedded fintech. EFG CEO Aladdin ElAfifi described the move as a “transformational step” toward “reshaping informal retail” through digital credit solutions and expanded inventory access for small merchants.
Fatura’s model fits seamlessly with MaxAB’s logistics-driven infrastructure, introducing a scalable and asset-light fintech layer that leverages the group’s existing distribution reach. Industry analysts project that Fatura could generate approximately 25% of MaxAB-Wasoko’s revenue in Egypt by fiscal year-end.
Investor Outlook: Valuations Under Pressure
Despite the strategic pivot, investor caution persists. Swedish venture firm VNV Global, holding a 2.1% stake in Wasoko—revised its valuation downward by 4% in Q1 2025, bringing its stake’s worth to $10 million. Though modest, the markdown based on revenue multiples hints at either a softening in revenues or broader apprehension about MaxAB-Wasoko’s financial trajectory.
This reflects a strategic shift toward consolidation over aggressive expansion. The MaxAB-Wasoko merger, executed as an all-stock transaction without raising fresh capital, has since prioritized internal alignment—merging technology infrastructures, streamlining administrative functions, and enhancing unit-level profitability.
“Our core focus now is sustainable growth and profitability in every market we operate in,” Yu stated. “The momentum we’re seeing in fintech reinforces our confidence in that direction.”
A New Playbook for Africa’s B2B Platforms?
MaxAB-Wasoko’s strategic shift toward fintech marks a wider recalibration in Africa’s B2B e-commerce space. Once among the continent’s most VC-attractive sectors—alongside fintech and cleantech—the industry now faces pressure from shrinking margins, limited funding, and intensifying rivalry. Despite counting 450,000 merchants and raising $230 million to date, the company’s scale-back in Moroccan e-commerce and deeper push into digital lending highlights a pivot from asset-heavy retail models to embedded finance as the new driver of growth.
This shift reflects a broader trend within the sector. Nigeria’s Sabi recently cut 20% of its workforce as it pivots toward commodity exports through its TRACE platform, driven by stronger margins and increasing global appetite for traceable products. At the same time, OmniRetail claims breakeven EBIT and 5% net contribution margins by integrating credit via OmniPay, its proprietary finance solution, which processes $95 million monthly while keeping non-performing loans under 0.5%.
As financial services become increasingly integrated with distribution platforms, the takeaway is evident: enduring Africa’s B2B e-commerce squeeze may depend more on funding inventory than on merely transporting it.
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