// startup autopsy

Sokowatch

$125M B2B commerce giant Wasoko imploded when its MaxAB merger fell apart.

runway zeroMass Layoff Spiral

Cascading layoffs that accelerated the decline

Founded	2015
Closed	2023
Country	Kenya
Sector	Logistics
Founder	Daniel Yu

62%

58%

Key Events Timeline

2015

FOUNDING

Sokowatch founded in Nairobi by Daniel Yu to digitize supply chains for kiosk retailers.

2022-02

FUNDING

Raised $125M Series B, rebranded to Wasoko, and expanded to Nigeria, Senegal, and Ivory Coast.

2023-04

ACQUISITION ATTEMPT

Announced merger with Egypt's MaxAB; deal fell apart within weeks over valuation disputes.

2023-06

SHUTDOWN

400+ staff laid off across Kenya, Tanzania, Rwanda; company effectively ceased operations.

// full analysis

Analyst plan

Documented cause

Sokowatch (rebranded Wasoko in 2022), founded by Daniel Yu in Nairobi, raised over $125M to digitize informal retail supply chains across East and West Africa. In 2023, a planned merger with Egyptian B2B commer...

ce platform MaxAB collapsed, triggering mass layoffs of over 400 staff in June 2023. The company cited macroeconomic headwinds, FX losses in Nigeria and Tanzania, and an inability to close its Series

Verified lesson

“Cross-border merger talks must have binding FX and timeline commitments to avoid fatal collapse....”

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HypeCycle · MoatType · ResearchTags

Sokowatch raised €125M and still failed. See the documented cause, verified lesson and all metrics.

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