Fintech Expansion Tactics: MaxAB-Wasoko Prioritizes Financial Services Over Online Shopping for Profitable Advancement Throughout Africa
MaxAB-Wasoko, the largest B2B e-commerce merger in Africa, is intensifying its focus on fintech to drive profitability, particularly in North and East Africa. This strategic pivot reflects a broader industry trend away from low-margin e-commerce expansion towards embedding financial services within their platform.
Scaling Back E-commerce Activities in Morocco
In Morocco, MaxAB-Wasoko is scaling back its e-commerce activities to concentrate on developing fintech services and preparing to launch a new marketplace. Othmane Benzakour, CEO of MaxAB’s Moroccan subsidiaries, stated that this marks a transition to prioritize fintech over logistics-heavy e-commerce in that market.
Fintech Growth in Egypt
In Egypt, which is a major market for MaxAB-Wasoko, the fintech division has seen over 100% growth in the past year, generating more than $180 million in annual revenue. The company secured a crucial banking license from Egypt’s Central Bank to facilitate cash deposits and withdrawals through its app, transforming the platform into a quasi-banking channel for informal retailers.
MaxAB-Wasoko's fintech operations now process about $15 million monthly in digital credit flows, aiming to broaden product offerings with buy-now-pay-later services. This fintech-driven strategy is considered MaxAB-Wasoko's strongest value driver and top priority for the near term.
Acquisition of Fatura
This shift comes after MaxAB-Wasoko's acquisition of Egyptian fintech-powered marketplace Fatura, which provides the group with instant market access and a well-established fintech backbone. The acquisition reinforces MaxAB-Wasoko's shift toward financial services.
Impact on the B2B E-commerce Sector
The takeaway from the shift in Africa's B2B e-commerce sector is that enduring the squeeze may depend more on funding inventory than on merely transporting it. The pivot from asset-heavy retail models to embedded finance is becoming a common trend, as seen in the cases of Sabi and OmniRetail in Nigeria.
Financial Implications
Swedish venture firm VNV Global has revised its valuation of its stake in Wasoko downward by 4% in Q1 2025, bringing its stake's worth to $10 million. EFG Finance, a branch of regional giant EFG Holding, supported the acquisition of Fatura, granting EFG a board seat at MaxAB-Wasoko and strengthening the group's financial base.
In Nigeria, Sabi and OmniRetail's pivots reflect a broader trend within the sector of moving from asset-heavy retail models to embedded finance as the new driver of growth. 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%.
MaxAB-Wasoko's merger was an all-stock transaction, indicating a commitment to growth through strategic realignment rather than diluting shareholder value with fresh capital. The company's focus on sustainable growth and profitability in every market it operates in, as stated by Yu from MaxAB-Wasoko, further underscores this commitment.
[1] Source: TechCrunch [2] Source: Ventureburn [3] Source: Disrupt Africa
- MaxAB-Wasoko, in its subsidiary in Morocco, is focusing on fintech development and a new marketplace, scaling back e-commerce activities to prioritize fintech.
- In Egypt, MaxAB-Wasoko's fintech division has experienced over 100% growth, generating over $180 million in annual revenue, and is aiming to expand product offerings with buy-now-pay-later services.
- MaxAB-Wasoko's strategic shift towards financial services is becoming evident with the acquisition of Egyptian fintech-powered marketplace Fatura, expanding its fintech backbone.
- In the B2B e-commerce sector, moves towards embedded finance, such as MaxAB-Wasoko's and Sabi's and OmniRetail's in Nigeria, are considered significant trends as the industry seeks sustainable growth and profitability.
