[Transcript] #65: Wasoko (Sokowatch) - How the B2B retail platform is providing services and improving the supply chain for informal retailers across Kenya and Africa
Transcript for podcast originally recorded on June 15, 2023
In June 2023, we explored the story of Wasoko (Sokowatch), which is a B2B e-commerce platform that connects informal retailers to FMCG suppliers, offering on-demand inventory delivery with same-day service. Wasoko raised over $125M, most notably a $125 million Series B round in 2022 co-led by Tiger Global and Avenir Growth.
After we recorded in 2023, there were some significant updates. In 2024, Wasoko merged with Egypt-based MaxAB, reportedly forming Africa's largest B2B e-commerce network, serving over 450,000 merchants and ~65M consumers across eight countries. The merged entity has diversified into fintech services (😉 every company is a fintech, right?), offering e-payments and credit financing, with fintech revenues surpassing traditional e-commerce sales in markets like Egypt.
Companies discussed: Wasoko (Sokowatch), Twiga Foods, TradeDepot, OmniBiz, Alerzo, mPharma, Nestle, Unilever, Multipro, Marketforce, Udaan & Flipkart
Business concepts discussed: Informal retail penetration, Agency banking adoption, B2B Operating systems, Informal markets, & last-mile distribution
Enjoy!
Olumide Ogunsanwo
Personal: Website
Afrobility Podcast: Stories and analyses of African technology companies (Website, Listen: Apple podcasts, Spotify & Google podcasts & Read: Substack Newsletter)
Adamantium Fund: African B2B fund focused on education, health, finance, food and transportation (Website & memo)
Firedom Book: Financial Independence stories of African Immigrants (Website, Substack Newsletter & Buy: Print, eBook or Audiobook)
Transcript starts here
[00:00:00] Olumide Ogunsanwo: Today we're going to talk about Wasoko, formerly known as Sokowatch. We will explore Wasoko's journey across five key areas: the context of Africa's informal retail sector, Wasoko's early history, its product and monetization strategy, its competitive positioning and potential exit options, and finally, our overall outlook.
This episode was recorded on June 11th, 2023.
Let’s do it. Sokowatch aka Wasoko.
[00:00:25] Bankole Makanju: Yeah, I had to change it on my notes, when we first started doing research and planning for this episode it was still called Sokowatch.
[00:00:33] Olumide Ogunsanwo: I'll be using both names interchangeably. But for the audience, the actual name is Wasoko the artist, formerly known as Sokowatch which they rebranded to in 2022.
It's it's been a while since we've done like our regular two week cadence, so it was tough, but I made it, I think, let's see how good
[00:00:58] Bankole Makanju: That episode, it kind of hurt my feelings when I saw somebody say, oh, Afrobility is now a monthly podcast. It is not.
[00:01:04] Olumide Ogunsanwo: [Laughter] Don't believe everything you see on the internet. Wasoko is a B2B e-commerce platform that provides on demand inventory delivery to small mom and pop shops by connecting them to FMCG suppliers and manufacturers. A lot of words, they are basically a Kenyan B2B e-commerce connector
[00:01:34] Bankole Makanju: Yeah, they are a full stack solution that provides retailers with inventory management, financing and delivery services.
[00:01:39] Olumide Ogunsanwo: Similar to Twiga Foods that we discussed on episode 64, but I think the big difference here is they're more focused on one part of the value chain, which is the SMB retailers, aka mom-and-pop stores, aka informal sellers, but similar.
[00:01:55] Bankole Makanju: Yeah, they also do only dry goods and Twiga does fresh foods.