OmniRetail, a Nigerian-based B2B e-commerce platform, has successfully raised $20 million in a Series A funding round. This significant investment aims to bolster the company’s expansion efforts across Nigeria, Ghana, and Ivory Coast, while enhancing its embedded finance offerings. The funding round was co-led by Norfund, the Norwegian development finance institution, and Lagos-based venture capital firm Timon Capital. Additional participation came from Ventures Platform, Aruwa Capital, Goodwell Investments (via Alitheia Capital), and Flour Mills of Nigeria.
Founded in 2019 by Deepankar Rustagi, OmniRetail has been at the forefront of digitizing the informal retail sector in sub-Saharan Africa. The company’s flagship platform, Omnibiz, along with tools like OmniPay and Mplify, provides retailers with essential resources to procure products, access credit, and optimize their businesses for increased profitability and scalability. To date, OmniRetail has onboarded over 150,000 small retailers and 145 manufacturers, operating across 12 cities in Nigeria, Ghana, and Ivory Coast.
The company’s asset-light strategy has been pivotal in achieving profitability. In 2023, OmniRetail became EBITDA positive, and by 2024, it had turned net profitable. This success is attributed to efficient utilization of aggregated assets within its network, demonstrating the scalability and profitability of its ‘network of networks’ model. The recent acquisition of Traction Apps, a Nigerian-based merchant solution platform, further strengthens OmniRetail’s position. This merger is expected to process about ₦2 trillion and facilitate loans worth ₦200 billion annually, serving 180,000 customers across wholesale and retail sectors.
The Series A funding will enable OmniRetail to deepen its market presence and enhance its digital infrastructure, aiming to transform the retail industry in Africa. With a focus on empowering informal retailers, particularly women who constitute 78% of its customer base, OmniRetail exemplifies the potential for technology-driven solutions to drive positive change in underserved communities.
