OmniRetail is flipping African B2B e-commerce on its head! Their story took a turn when they closed $20 million Series A funding round, co-led by Norfund. This marks Norfund’s inaugural direct equity investment in an African startup, showcasing the growing interest in the region’s burgeoning technology landscape. The new capital will help support OmniRetail’s growing number of retailers, as well as allow them to expand into new product type categories.
Founded just in 2019, OmniRetail has had some noteworthy growth statistics in just the last year. The company posted a 35% gain in net merchandise volume (NMV) and an astounding 40% growth in revenue! Last year, it handled more than ₦1.3 trillion (about $810 million) worth of transactions, a testament to strong demand for its services.
OmniRetail’s success relies on consumer engagement with the company’s new Omnipay product. This technical fix allowed their solution to disperse ₦19 billion monthly —approximately $12 million—in inventory credit with near-zero defaults. This product has been pivotal in enhancing financial access for retailers operating in the competitive fast-moving consumer goods (FMCG) landscape.
For Malik, this is an important step as it confirms that OmniRetail has a sustainable business model. Onboarding Nigeria-based merchant solution platform Traction Apps through an acquisition earlier this year only solidified its positioning. OmniRetail’s smart strategy even allows them to create a robust financial picture for each retailer. This strengthens their monopoly-like control of the entire supply chain and increases efficiencies.
OmniRetail’s operational model has also digitized the order management processes for 145 manufacturers and over 5,800 distributors. Today, it supports more than 150,000 informal retailers in more than a dozen cities across Nigeria, Ghana, and Ivory Coast. The firm has established an extensive third-party logistics operation, with over 1,100 trucks. Its planned partnership with 85 local logistics partners will help address last-mile distribution and delivery processes.
The founders of OmniRetail appropriate have stretched the transformative potential of their strategy. Rustagi noted, “Every transaction in the FMCG value chain has two sides: the movement of goods and the movement of funds.” He added, “Today, we are in a position to aggregate maximum benefits from every transaction in the value chain. Our plan is to dive deep into the value chain and maximize margins.”
Bagaria highlighted the challenges that have historically plagued the FMCG sector: “For years, goods have been moving from point A to point B, but the lack of transparency has hindered financial inclusion and caused inefficiencies in the process.” By establishing an ecosystem that simplifies this complicated landscape, he’s confident that OmniRetail can really solve these persistent problems.
With plans to continue to deepen its focus on embedded finance products, OmniRetail looks to build upon these new capabilities and expand its embedded service offerings even further. As Cathrine Conradi remarked, “Embedded finance is one of the most transformative tools for small business growth in Africa.” This view is consistent with OmniRetail’s mission to promote financial inclusion and business efficiency among its markets of focus.
The company has been able to raise a total of $38 million in equity and equity-related instruments since founding. Its recent accomplishments, shown below, serve as a testament to its operational effectiveness. This achievement confirms it as a major frontier for continuing to revolutionize the B2B e-commerce scene across all of Africa.