His decision comes one year after Wasoko’s landmark merger with Egypt’s MaxAB, which created Africa’s largest B2B digital platform for informal retail.

Announcing the move in a LinkedIn post, Yu said: “After more than 11 incredible years building Wasoko, and completing our landmark merger last year with MaxAB, I’ve decided to transition out of my full-time role at the company.”

From Startup to $625 Million Valuation

Since launching in 2013, Daniel Yu scaled Wasoko into a $625 million business backed by Tiger Global, Silver Lake, and British International Investment. The company raised over $230 million in funding and connected 450,000 merchants to 65 million consumers across Kenya, Tanzania, Rwanda, Egypt, and Morocco.

The merger with MaxAB bolstered operations but came with heavy restructuring. In late 2023, Wasoko laid off over 100 staff, closed its Zanzibar office, and suspended operations in Uganda and Zambia. 

Senior Kenyan executives, including the CFO, CTO, and Head of HR, also exited earlier this year as the combined business shifted leadership to Cairo, where MaxAB co-founder Belal El-Megharbel now leads as CEO.

Yu’s Continued Role and Focus on Profitability

Although leaving daily operations, Yu confirmed he will remain involved in an advisory capacity: “While I’m stepping back from day-to-day responsibilities, I’ll remain closely involved in helping the company reach new heights under Belal’s leadership.”

Across African tech, startups are moving from chasing growth through gross merchandise volume to focusing on sustainable profitability.

Relocating to India and Leading Malengo

Yu’s departure is also impacted by personal commitments. He revealed that he is relocating to India to join his fiancée, Rachel Abbott, as they prepare for their wedding. At the same time, he will expand his work as board chair of Malengo, a nonprofit that funds international education for low-income students to help break cycles of poverty.

“On a personal note, I’m relocating to India to join my amazing fiancée, Rachel Abbott, as we plan our wedding and life together ahead. Alongside this, I’m excited to further step into my recent appointment as board chair at Malengo, a truly innovative nonprofit eliminating extreme poverty through international education.”

What Daniel Yu’s Exit Means for Wasoko

Yu’s transition is a huge shift for Wasoko, which has positioned itself as a key player in Africa’s $600 billion informal retail sector. With MaxAB at the fore and Cairo as its operational centre, the company is doubling down on digital payments, credit financing, and AI-powered e-commerce tools.

For Daniel Yu, this closes a chapter defined by building one of Africa’s biggest retail-tech stories, while opening another focused on global impact through education and poverty reduction.

This merger-of-equals will bolster the growth and development of the e-commerce pioneers to establish the most successful digital retail platform on the continent. 

As the largest tech merger in Africa, Wasoko and MaxAB will have a collective customer base of over 450,000 merchants serving an estimated 65+ million consumers with essential goods in their local communities across eight African countries: Egypt, Morocco, Kenya, Tanzania, Rwanda, Uganda, Zambia and DR Congo.

Since the start of 2023, both companies have experienced sustained traction with Wasoko’s monthly revenue increasing by 30% and its Sub-Saharan African network of merchants rising by over 20%.

Equally, MaxAB has grown its monthly active merchant network by 25% and its fintech transaction volumes by over 50%. Both companies have also made significant strides towards profitability, which will be accelerated through the combination of elite talent and capabilities across markets.

Through the merger, Wasoko and MaxAB also expect to collaborate deeply on enabling greater intra-Africa trade between their markets and implementing new technologies on a Pan-African scale.

The force behind Wasoko and MaxAB’s market leadership lies not only in their B2B e-commerce offering but also in their integrated payment solutions, merchant financing and proprietary logistics operations at the heart of both businesses.

Through the shared pan-African vision of both startups to address major challenges inhibiting the development of Africa’s $850bn informal retail sector, this collaboration will empower the combined companies to further strengthen its infrastructure while harnessing cross-market synergies.

Speaking on the merger, Belal El-Megharbel, MaxAB CEO , stated: “This merger is the culmination of developing excellent teams, a lot of hard work over the years and a commitment to innovative solutions adding up to our unique offering to retailers. I am proud of what we have achieved as MaxAB, and even more excited for our future together with Wasoko.

As a combined company, we can truly unlock the potential of Africa’s informal retail sector across a variety of technology-enabled services in e-commerce, fintech and logistics. As we embark on this new chapter, I am confident that the natural synergies between us will empower our customers and partners across the continent.”

Daniel Yu, Wasoko CEO  added: “When I launched Wasoko in Kenya in 2016, it was with the promise of becoming a truly pan-African company, and this merger is the boldest step we’ve taken towards realising that goal while reflecting my personal history developing the initial concept behind Wasoko during my time spent in Egypt over a decade ago.

As we embark on our next stage of expansion, our merger with MaxAB underscores our commitment to empowering businesses and connecting consumers across all parts of the African continent with an affordable and diverse range of essential products. We are excited to go further together on our shared vision, bolstered by complementary strengths while building the foundation for a remarkable partnership.”

Belal and Daniel are committed to shaping the long-term future of the company together, and will both continue as full-time executive leaders in the company following the completion of the merger, which remains subject to internal approvals and other customary closing conditions. As part of the merger transaction, the combined business has received additional investment and has substantial runway to reach profitability while pursuing new opportunities.