MaxAB, one of North Africa’s prominent B2B e-commerce platforms, announced today the departure of its co-founder, Mohamed Ben Halim, just two months after its merger with Kenya’s Wasoko. Ben Halim, who played a key role in the company’s inception and expansion, leaves the company at a critical moment, marking the end of an era for MaxAB.
Since co-founding MaxAB in 2018, Ben Halim has been instrumental in steering the company’s growth across Egypt and Morocco, helping it become a leader in supplying small retailers with essential goods. His leadership also extended to MaxAB’s LAAS (Logistics as a Service) vertical, where he oversaw the company’s strategic pivot into logistics and fintech offerings.
The timing of Ben Halim’s departure comes shortly after MaxAB and Wasoko completed a landmark merger in August 2024, in what has been touted as Africa’s largest consolidation in the B2B e-commerce space. The merger, which involved months of complex negotiations and integration efforts, was seen as a strategic move to create a unified entity capable of reshaping Africa’s $600 billion informal retail market.
The merger between MaxAB and Wasoko, first announced in December 2023, was finalized after eight months of integration work, bringing together two major players in the B2B e-commerce space. The deal, executed through an all-stock transaction, involved the consolidation of 16 subsidiaries across several African markets.
According to Daniel Yu, co-CEO of the merged entity, the combination of MaxAB and Wasoko is designed to go beyond traditional B2B e-commerce. “We are moving from being standalone platforms to creating a multi-vertical ecosystem that better serves Africa’s informal retail sector,” said Yu, highlighting the strategic importance of the merger in addressing the needs of the continent’s small retailers.
Despite the financial challenges, the merged company now boasts Africa’s largest network of informal B2B retailers, serving over 450,000 merchants. While specific Gross Merchandise Value (GMV) numbers have not been disclosed, Yu emphasized a shift in focus from GMV growth to achieving profitability. “We are now making a net contribution margin per order, which wasn’t the case previously,” he noted.
Reflecting broader market trends, the merged entity is turning its attention toward profitability and scaling its fintech operations. Both MaxAB and Wasoko had previously dabbled in financial services, offering e-payments, credit, and digital services. These fintech services, which have shown strong performance in markets like Egypt, are now being integrated into a unified platform to drive higher margins.
Yu noted that fintech operations are expected to more than double in revenue by December 2024, outpacing traditional e-commerce transactions. This shift is seen as a key component of the company’s strategy to achieve long-term financial sustainability.
The merger has already led to significant operational synergies, with back-office functions being centralized and costs streamlined across the organization’s nearly 4,000 employees. The company is also looking to capitalize on new revenue streams, including cross-border procurement and expanding into new markets.
Despite early concerns about merging two loss-making businesses, Yu remains optimistic. “By consolidating overhead costs and improving operational efficiency, we are already seeing improvements in profitability,” he said. The combined entity is also exploring new opportunities for growth, including sourcing products across borders, such as Kenyan tea for Egyptian retailers.
As MaxAB embarks on this new chapter without co-founder Ben Halim, the company is poised to continue its growth trajectory in Africa’s rapidly evolving B2B e-commerce space. While Ben Halim’s departure marks the end of an important chapter for MaxAB, the groundwork he helped lay will continue to shape the company’s future for years to come.