This conversation appears to be an interview with the CEO of Wasoko, a B2B e-commerce company in Africa. Here’s a summary of the key points:
Background and Merger
- The CEO mentions that both Wasoko and MaxAB were loss-making businesses before merging.
- He believes that by combining their costs, they can achieve significant savings and become more efficient.
Cross-Border Synergies
- The CEO highlights the potential for cross-border synergy between the two companies, particularly in private label operations and contract manufacturing.
- He mentions that while these opportunities are still small, they will take time to materialize fully.
Future Expectations
- The CEO believes that further consolidation is necessary in the African tech ecosystem, especially in the B2B commerce space.
- He argues that scale and diversified risk are essential for startups to be competitive as investment opportunities on the global landscape.
The Role of M&A
- The CEO shares his experience with trying to build a business alone in Senegal and Côte d’Ivoire before ultimately shutting it down and merging with MaxAB.
- He believes that M&A is a viable way to grow businesses and achieve a true Pan-African footprint.
Some potential follow-up questions could be:
- Can you elaborate on the cost savings achieved by combining your costs?
- How do you plan to expand your private label operations and contract manufacturing across borders?
- What specific regions or countries do you see as key opportunities for growth in Africa?
- How will you address the challenges of building a business in different local markets with varying regulations and customs?
