In a move that signals a broader shift in the African e-commerce landscape, MaxAB-Wasoko — the continent’s largest B2B e-commerce merger — is doubling down on fintech as a lever for profitability, particularly in key North African and East African markets. The strategic pivot follows years of rapid but margin-tight growth in traditional e-commerce, with recent signs pointing to a recalibration of priorities across the newly formed entity’s operations.
The latest indication comes from Morocco, where MaxAB is restructuring its local operations by gradually retreating from e-commerce to concentrate on fintech services. “Strategically, we are currently focusing our efforts on developing our fintech activities in Morocco and preparing for the launch of our marketplace,” said Othmane Benzakour, CEO of ABmaxCo and MaxPay, the two Moroccan subsidiaries of MaxAB. “During this transition phase, we have decided to slow down our e-commerce activities.”
The decision mirrors a broader trend within the merged group — formed in 2024 through the high-profile union of Egypt’s MaxAB and Kenya’s Wasoko — towards integrating deeper financial services into their core offerings. The shift appears to be part of a profitability-focused transformation, as the group seeks to consolidate its footprint across five African markets: Egypt, Morocco, Kenya, Rwanda, and Tanzania.
Since the merger, MaxAB-Wasoko has positioned itself not just as a logistics and supply chain platform for informal retailers, but increasingly as a fintech-enabled ecosystem. In Egypt alone, fintech services now account for over $180 million in annual turnover. The group has disbursed over $20 million in working capital loans to small retailers in the past year and boasts repayment rates above 99%, largely due to real-time credit scoring models based on merchants’ e-commerce transactions.
“Our fintech services in Egypt have more than doubled in the past year,” said Daniel Yu, co-CEO of MaxAB-Wasoko and founder of Wasoko. “That’s why at least for the next year, our primary focus is expanding our fintech offerings across existing markets.”
This evolution comes amid a sobering reality: e-commerce may be fast-growing, but it’s capital-intensive and low-margin. While MaxAB-Wasoko’s core e-commerce platform is profitable in three of its five active countries, the road to continent-wide profitability remains uphill. Fintech, on the other hand, offers recurring revenue, better unit economics, and, crucially, a higher ceiling for margin growth.
Fatura Acquisition: A Fintech-First Expansion
The group’s recent acquisition of Egyptian fintech-enabled marketplace Fatura further hints at this pivot. With 626 wholesalers spread across 16 cities, including five new regional outposts, Fatura gives MaxAB-Wasoko immediate market penetration and a proven fintech infrastructure.
Backed by EFG Finance — a subsidiary of regional financial powerhouse EFG Holding — the deal will see EFG take a board seat at MaxAB-Wasoko, boosting the group’s capital and signaling long-term commitment to embedded financial services. EFG’s CEO Aladdin ElAfifi called the transaction a “transformational step” that would “reshape informal retail” by providing small merchants with digital credit tools and broader access to stock.
Fatura’s business model aligns neatly with MaxAB’s supply-chain engine, offering a scalable, asset-light layer of financial tools that can ride on top of an already wide logistics network. Analysts expect Fatura to contribute around 25% of MaxAB-Wasoko’s Egypt revenue by the end of the fiscal year.
Investor Sentiment: Watching the Numbers
Still, investor sentiment remains cautious. Swedish venture firm VNV Global, a minority shareholder in Wasoko, marked down its 2.1% stake by 4% to $10 million in Q1 2025. The valuation decline, modest though it may be, was driven by revenue-based multiples — suggesting either a revenue dip or broader investor concerns over the group’s topline performance.
This mirrors what appears to be a period of consolidation rather than fresh expansion. The merger between MaxAB and Wasoko was structured as an all-stock deal, with no new capital raised. Since then, the focus has shifted inward: integration of tech stacks, centralization of back-office operations, and sharpening of unit economics.
“Our strategic priority moving forward is to grow sustainably and achieve profitability across all our markets,” said Yu. “We’ve seen strong performance in fintech that’s giving us confidence.”
A New Playbook for Africa’s B2B Platforms?
MaxAB-Wasoko’s pivot toward fintech signals a broader reckoning in Africa’s B2B e-commerce sector. Once a top venture capital magnet — alongside fintech and cleantech — the space is now grappling with tighter margins, capital constraints, and heightened competition. While the merged entity boasts 450,000 merchants and $230 million in funding, its retreat from e-commerce in Morocco and deepening investment in digital credit services reflects a shift from inventory-heavy models to embedded finance as the engine of growth.
This transition mirrors similar moves across the sector. Nigeria’s Sabi recently laid off 20% of its staff as it refocuses on commodity exports via its TRACE platform, citing better margins and rising global demand for traceable goods. Meanwhile, OmniRetail reports breakeven EBIT and 5% net contribution margins by embedding credit through OmniPay — its in-house finance tool that processes $95 million monthly and maintains NPLs below 0.5%.
As more startups layer financial services onto distribution networks, the message is clear: surviving Africa’s B2B e-commerce crunch may hinge less on moving goods, and more on financing them.