Wasoko, an innovative African e-commerce company, is making waves once again with its announcement of expansion into the Democratic Republic of Congo (DRC). Leveraging its existing e-commerce hub in neighbouring Rwanda, this move represents the company’s second country expansion this year, following the launch of operations in Zambia in May 2023.
Its expansion into the DRC is a significant step towards fostering economic growth, job opportunities, and sustainable development in the region while bringing local businesses into the digital age.
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Wasoko has expanded its market coverage to serve small businesses in Goma, the capital of the DRC’s North Kivu province. This expansion has been facilitated through special cross-border trade zones with the support of the Rwandan government, aiming to promote regional economic integration.
By participating in this initiative, Wasoko joins a select group of businesses working to integrate the DRC into the East African Community as its newest member country, while simultaneously supporting economic development across the region.
Since its initial expansion into Rwanda in 2019, Wasoko has witnessed remarkable growth, with revenues surging from $2 million in its first year to $48 million in 2022. Currently, the platform serves over 5,000 informal retailers in Rwanda alone. Capitalising on its success in Rwanda, it aims to replicate this achievement by promoting growth for small businesses in DRC.
Daniel Yu, founder and global CEO at Wasoko, stated, “As one of Africa’s largest countries, the DRC presents a substantial market opportunity for Wasoko. Despite its rapidly growing population of nearly 100 million people with increasing purchasing power, the country’s significant infrastructural challenges have placed limitations on its e-commerce sector.
“However, through our cross-border logistical capabilities, established platform, and extensive product range, we strongly believe we are well-positioned to unlock this potential and become the market leader in the DRC’s B2B e-commerce space.”
Yu further emphasised, “As we move ahead, we look forward to building crucial relationships with local, on-the-ground stakeholders and tailoring our traditional customer-centric approach to align with the unique needs of the Congolese population.”
Following its expansion into the DRC, Wasoko plans to replicate this model across other regions in Africa, as part of its long-term vision to strengthen its Pan-African presence and empower local businesses, ultimately connecting African consumers with a diverse range of products and services.
Philip Lucky, acting chief investment officer at Rwanda Development Board, expressed support for Wasoko’s expansion, stating, “The government of Rwanda is pleased with Wasoko’s expansion into the DRC. It joins Rwanda’s success stories of its proof-of-concept strategy, which allows investors to set up and test their solutions in Rwanda before scaling to the region. We remain committed to improving Rwanda’s ICT & Innovation ecosystem to enable investors and startups to thrive.”
Since its inception in 2016, Wasoko has pioneered innovative technology to address supply chain inefficiencies faced by millions of local shop owners in Africa’s informal retail sector. With an established presence across Kenya, Tanzania, Rwanda, Uganda, and Zambia, the company has created a vast network of over 220 000 informal retailers and has delivered more than 5 million orders to date.
Wasoko’s expansion into the DRC marks another milestone for the company, which raised a remarkable $125 million in a Series B funding round, the largest venture financing round ever raised for a non-fintech start-up in Africa, in March 2022. It was also recognized by the Financial Times as Africa’s Fastest Growing Company last year.
Through the Wasoko mobile app, shop owners can purchase goods from manufacturers and distributors at competitive prices based on supply and demand. They can also access real-time tracking data on sales, business insights, and market trends. The platform has built an end-to-end logistics process encompassing procurement, distribution, financing, and technology.
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