E-commerce Startup Wasoko Restructures Operations Ahead of Merger with MaxAB

Kenyan e-commerce start-up, Wasoko, has announced a strategic restructuring of its operations as it prepares for a pending merger with MaxAB. This restructuring involves the closure of its Zanzibar office and a temporary pause in operations in Uganda and Zambia.

The decision to shut down the Zanzibar office, which was established in 2022, comes amidst a broader company-wide restructuring aimed at focusing on more mature markets. Wasoko emphasizes its commitment to continue as a private sector ambassador for the Zanzibar tech initiative.

While Wasoko’s offices in Uganda and Zambia are currently on temporary pause, the company has assured that these operations are not permanently closed. The restructuring process has also led to a reduction in staff numbers.

Following the forthcoming merger with MaxAB, notable executives at Wasoko, including co-founder Josh Raine, CFO Sundararaman Pattabiraman, and CTO Tridiv Vasavada, have departed the company. Top human resources personnel like Carolyne Mwaura have also left in recent months.

As the merger between Wasoko and MaxAB progresses, there have been reports of overlapping roles and subsequent layoffs in a bid to streamline operations. This has resulted in internal restructuring and adjustments at various levels within the organization.

While Wasoko has not disclosed the exact number of employees affected by the recent layoffs, the company mentioned that it has been necessary to align roles and responsibilities post-merger. The departure of key leaders and redundancies have marked a significant shift in the organizational structure.

Notably, the e-commerce start-up, Wasoko, secured a total of $152 million in funding since its inception in 2013. The financial backing includes a substantial Series B round of $125 million, with investments from prominent firms like Tiger Global Management and Avenir Growth Capital.

With its headquarters in Nairobi, Kenya, Wasoko has expanded its operations to other African countries like Senegal and Cote d'Ivoire. The company is on track to finalize its merger with MaxAB by the end of March 2024, after an extensive process that began in mid-2023.

This merger has led to the consolidation of various departments and roles, impacting over 100 employees across both entities. Key leaders from Wasoko have exited the company, while MaxAB has taken over crucial functions like finance, marketing, and logistics.