Maxab Secures $15M & Acquires Waystocap

MaxAB Expands into North Africa with WaystoCap Acquisition

Last month, MaxAB, a B2B e-commerce platform serving food and grocery retailers in Egypt, secured a substantial $40 million Series A funding round. The company has now announced a $15 million extension to this Series A, backed by existing investors including RMBV, IFC, and Flourish Ventures. This brings the total Series A funding to $55 million.

Company Background and Initial Growth

Founded in 2018 by Belal El-Megharbel and Mohamed Ben Halim, MaxAB facilitates procurement and grocery delivery services for retailers throughout Egypt. The platform enables store owners to purchase products, arrange delivery and logistics, and access dedicated customer support.

During a previous discussion regarding its initial Series A funding, CEO El-Megharbel indicated MaxAB’s intention to broaden its operations beyond Egypt, targeting expansion across the Middle East and North Africa. Furthermore, the company planned to introduce new product lines and augment its workforce.

Strategic Acquisition of WaystoCap

Today’s announcement signifies MaxAB’s initial move towards regional expansion. The company is acquiring Morocco-based B2B e-commerce and distribution platform WaystoCap for an undisclosed sum.

WaystoCap was co-founded in 2015 by Niama El Bassunie, Mehdi Daoui, Anis Abdeddine, and Aziz Jaouhari Tissafi. Initially focused on cross-border trade for business goods in Africa, the company gained recognition as the first Moroccan firm accepted into Y Combinator’s Winter batch in 2017. Subsequently, WaystoCap secured a $3 million seed funding round.

WaystoCap’s Evolution and Market Position

The company initially extended its cross-border services to Ivory Coast and Togo, processing over $3 million in transactions quarterly. However, following a strategic shift to a model similar to MaxAB – connecting retailers with suppliers within Morocco – WaystoCap withdrew from those countries. It subsequently grew its network to encompass over 8,000 retailers in Morocco.

El-Megharbel explained that MaxAB’s plans for Moroccan entry aligned with WaystoCap’s pursuit of new funding and increased presence in the Moroccan market. Rather than competing, the two organizations determined that collaboration would be the most beneficial path forward.

Synergies and Future Strategy

“I deeply admire the team,” El-Megharbel stated. “They share our core values and are dedicated to leveraging a tech-enabled supply chain to optimize food distribution across the continent.” He further emphasized the importance of building a global team capable of localized thinking and effective execution, and believes WaystoCap is an ideal partner in achieving this.

This acquisition not only marks MaxAB’s entry into Morocco but also into the broader Maghreb region – encompassing Algeria, Libya, Mauritania, Morocco, and Tunisia – a market with limited competition.

Benefits for Retailers and Future Outlook

MaxAB anticipates that over 70,000 retailers across both platforms will gain advantages from its technology, enhanced end-to-end supply chain solutions, and business intelligence tools, alongside WaystoCap’s established knowledge and expertise.

Niama El Bassunie will assume the role of Managing Director at MaxAB Morocco. She expressed her enthusiasm, stating, “We are thrilled to contribute to the creation of a new, all-star team led by experienced entrepreneurs to establish a regional leader in food and grocery supply. We look forward to continuing our collaboration and advancing the business to its next stage.”

The Maghreb market represents new ground for MaxAB, and the acquisition solidifies its position as the most well-funded and largest B2B e-commerce platform for retailers and suppliers. Morocco’s burgeoning tech sector presents significant opportunities, and the integration of WaystoCap empowers MaxAB to cultivate a truly global team with a focused local approach, positioning it for leadership in the B2B retail and grocery sector across the Middle East and Africa.

“Our ultimate goal is to establish a tech-enabled supply chain throughout African and Middle Eastern nations, and then interconnect them,” El-Meghabel explained. “This is where we can make a substantial impact by ensuring the right amount of food reaches the right place at the right time, minimizing waste – a critical concern for the MENA region.”

Recent Acquisition Trends in Africa

MaxAB’s acquisition of WaystoCap is the second cross-border acquisition in Africa this week. Plentywaka, a mobility startup based in Nigeria and Canada, announced the acquisition of its Ghanaian counterpart, Stabus, for an undisclosed amount on Monday. Additionally, Ajua, a Kenyan consumer experience platform, acquired WayaWaya, a Kenyan AI and ML messaging and payments company, earlier in April.

WaystoCap is also the second African company backed by Y Combinator to achieve an exit, following Paystack’s acquisition by Stripe for over $200 million last October.