The regional competition watchdog for Eastern and Southern Africa has opened an inquiry into the merger between Kenya’s Wasoko and Egypt’s MaxAB B.V., a deal that created one of Africa’s largest digital commerce and fintech platforms.
In a notice released in early October, the COMESA Competition Commission (CCC) said it had begun reviewing the transaction to determine whether the merger is likely to “substantially prevent or lessen competition in the Common Market” or run contrary to public interest.The inquiry follows a notification filed by the parties after MaxAB acquired Wasoko in an all-stock transaction.The combined company now operates across Kenya, Rwanda, Egypt, Morocco, and Tanzania, serving roughly 450,000 merchants who reach an estimated 65 million consumers, according to company disclosures.
The COMESA inquiry has invited competitors, suppliers, and customers to submit written representations by October 24, 2025, as it weighs whether the transaction could limit competition or harm smaller market players.
The merger, finalized in 2024, brought together two venture-backed startups that had each sought to digitize Africa’s fragmented retail supply chain.
Wasoko had been one of East Africa’s standout startups, raising over US$230 million from investors and racking a valuation of US$625 million before the merger.Its counterpart, MaxAB, founded in Cairo, had carved out dominance in North Africa’s B2B distribution market and developed a growing fintech arm providing digital payments and merchant financing.
Both firms struggled with cash burn and operational costs amid a global venture slowdown prompting them to pursue what Wasoko founder Daniel Yu called a “merger of equals.”
In September 2025, Daniel Yu stepped down from his full-time role, citing a desire to focus on personal projects while remaining an adviser. Belal El-Megharbel now runs the combined company from Cairo.
The integration was far from seamless as Wasoko had shuttered its offices in Zanzibar, paused operations in Uganda and Zambia, and laid off more than 100 employees in late 2023. Senior Kenyan executives, including the CFO, CTO, and head of HR, exited in early 2024 as the firm consolidated management under Cairo-based leadership.