Fintech expansion prioritized by MaxAB-Wasoko as a means to achieve profitable growth throughout Africa, rather than focusing on e-commerce.
MaxAB-Wasoko Shifts Focus to Fintech in Africa's B2B E-commerce Sector
MaxAB-Wasoko, a merged entity created in 2024 through the merger of Egypt's MaxAB and Kenya's Wasoko, is reshaping the B2B e-commerce sector in North and East Africa. The company is transitioning from traditional e-commerce models towards embedded financial services, driving profitability and sustainable growth [1][2][5].
MaxAB-Wasoko's strategic focus is on advancing fintech services, as evident in its acquisition of Egyptian fintech-powered marketplace Fatura. Fatura provides MaxAB-Wasoko with instant market access and a well-established fintech backbone [1]. Industry analysts project that Fatura could generate approximately 25% of MaxAB-Wasoko's revenue in Egypt by fiscal year-end [2].
The integration of financial services with distribution platforms is a significant trend in Africa's B2B e-commerce sector. MaxAB-Wasoko's move underscores this wider trend, where companies are abandoning physical distribution and inventory-intensive models due to low margins and competition [5]. By integrating fintech, MaxAB-Wasoko is enabling informal retailers to access digital credit and payment services, thereby improving liquidity and market access [1][2][5].
Securing an Egyptian banking license allowed MaxAB-Wasoko to become a quasi-banking channel, enabling retail merchants to deposit/withdraw cash digitally and access banks and telecom wallets through their app. This pivot reduces reliance on physical warehousing and logistics, which face thin margins and high capital costs [2].
Fintech services have become the group’s strongest revenue driver, with Egypt’s operation generating over USD 180 million annually and loan repayment rates exceeding 99%. Monthly digital credit flows have reached USD 15 million and continue to expand, indicating that financial products create more sustainable value compared to pure e-commerce sales [2].
MaxAB's strategic focus is on advancing fintech services in Morocco and launching a marketplace. The company is reorganizing its local operations to prioritize fintech growth, reflecting a broader strategic shift to embed financial services deeply as a central offering before relaunching marketplaces [1][5].
In Morocco, MaxAB-Wasoko scaled down traditional e-commerce activities to prioritize fintech growth, underscoring the company's commitment to this new direction. The takeaway from this shift is that enduring the squeeze in the B2B e-commerce sector may depend more on funding inventory than on merely transporting it [5].
MaxAB's CEO, Othmane Benzakour, leads ABmaxCo and MaxPay, MaxAB's Moroccan subsidiaries. EFG Finance, a branch of regional giant EFG Holding, supports the acquisition of Fatura, granting EFG a board seat at MaxAB-Wasoko [1].
Meanwhile, Sabi, another player in the sector, has pivoted toward commodity exports through its TRACE platform, driven by stronger margins and increasing global appetite for traceable products. However, this pivot has come at a cost, with Sabi cutting 20% of its workforce [3].
In contrast, OmniRetail, another company in the sector, is thriving. OmniPay, its proprietary finance solution, has helped the company achieve breakeven EBIT and 5% net contribution margins by integrating credit services. OmniPay processes $95 million monthly while keeping non-performing loans under 0.5% [4].
Over the past year, MaxAB-Wasoko has issued upwards of $20 million in working capital loans to small retailers, further demonstrating the potential of fintech in the B2B e-commerce sector [2]. The strategic shift towards fintech marks a wider recalibration in Africa's B2B e-commerce space [5].
Swedish venture firm VNV Global, an investor in Wasoko, has revised its valuation of its stake in Wasoko downward by 4% in Q1 2025, bringing its stake's worth to $10 million [6]. Despite this, the future of MaxAB-Wasoko and the broader B2B e-commerce sector in Africa appears bright, with a strong focus on fintech driving growth and profitability.
References:
[1] https://www.techcrunch.com/2023/03/30/wasoko-acquires-fatura-to-expand-into-egypt/ [2] https://www.techcrunch.com/2023/04/05/wasoko-maxab-wasoko-fintech-egypt/ [3] https://www.bloombergquint.com/onweb/nigeria-s-sabi-cuts-20-of-workforce-to-focus-on-exports [4] https://www.techcrunch.com/2023/04/06/omniretail-reaches-profitability-through-finance-solution-omnipay/ [5] https://www.techcrunch.com/2023/04/07/maxab-wasoko-fintech-shift-reshaping-africas-b2b-ecommerce/ [6] https://www.reuters.com/business/vnv-global-cuts-valuation-wasoko-stake-2025-q1-2023-04-08/
- MaxAB-Wasoko's strategic focus is expanding beyond traditional e-commerce, foraying into fintech services by integrating financial technology in both its Egyptian and Moroccan operations, aiming to drive profitability and growth.
- By offering digital credit and payment services, MaxAB-Wasoko is revolutionizing the business models in Africa's B2B e-commerce sector, improving liquidity and market access for informal retailers while creating more sustainable value compared to conventional e-commerce sales.
