OmniRetail Disrupts Africa’s B2B E-Commerce Landscape with $20M Series A Funding
In a significant move for the African B2B e-commerce landscape, OmniRetail has successfully secured a $20 million Series A equity funding round, aimed at transforming the informal retail sector across Nigeria and West Africa. This funding comes at a time when the excitement around African startups addressing supply chain and operational challenges in the fast-moving consumer goods (FMCG) sector has dwindled. However, OmniRetail stands out as a beacon of hope, showcasing a scalable and profitable model for future growth.
OmniRetail: A Leader in African B2B Commerce
Founded in 2019, OmniRetail has raised a total of $38 million in equity and debt. The recent funding round was co-led by the Norwegian development finance institution Norfund and Lagos-based Timon Capital, with additional participation from Ventures Platform, Aruwa Capital, Goodwell Investments (via Alitheia Capital), and Flour Mills of Nigeria. Rustagi emphasizes that this investment positions OmniRetail to dominate a segment where many others have faced challenges in achieving profitability.
Expanding Reach Across Africa
OmniRetail’s innovative platform digitizes order management for a vast network, including:
- 145 manufacturers
- Over 5,800 distributors
- More than 150,000 informal retailers
These operations span across 12 cities in Nigeria, Ghana, and Ivory Coast, enabling retailers to:
- Order inventory
- Access working capital
- Make digital payments
Achieving Profitability through Efficiency
In 2023, OmniRetail achieved EBITDA positivity, followed by net profitability in 2024. Rustagi attributes this success to an asset-light strategy that enhances efficiency. He states, “The profitability journey was an outcome of our efficiency utilizing the assets aggregated in our network.” This model, described as a “network of networks,” not only drives profitability but also scalability.
Understanding the FMCG Landscape
The leadership team at OmniRetail possesses extensive experience in the FMCG retail ecosystem, which grants them unique insights into:
- The operational value chain
- Key players in the market
- Existing gaps in visibility
Rustagi and Archit Bagaria, OmniRetail’s head of investment, emphasize the importance of transparency in enhancing financial inclusion and efficiency within the supply chain. They believe that understanding these dynamics is crucial for building an ecosystem that streamlines operations.
Innovative Financial Solutions
OmniRetail has successfully processed over ₦1.3 trillion (~$810 million) in transactions, thanks to its BNPL product, Omnipay, which disburses ₦19 billion monthly (~$12 million) with near-zero defaults. The acquisition of Traction Apps in 2024 further fortified its strategy, allowing OmniRetail to offer comprehensive financial profiles for each retailer, thereby enhancing control over the supply chain.
Future Plans for Growth
With the newly acquired funding, OmniRetail plans to:
- Expand its retailer base
- Introduce new product categories such as personal care and cold storage
- Upgrade its infrastructure and credit underwriting tools
Norfund views OmniRetail as a critical player in transforming small business growth in Africa, particularly through embedded finance solutions. Timon Capital echoes this sentiment, noting that OmniRetail has reached an inflection point, showcasing significant potential for profitable growth.
For more insights into the B2B e-commerce landscape in Africa, check out our related articles on the latest trends in African e-commerce and how technology is reshaping the retail industry.
