OmniRetail, a Nigerian B2B e-commerce platform modernizing Africa’s informal retail sector, has raised $20 million in a Series A funding round.
The investment was co-led by Norfund (marking its first direct equity bet on an African startup) and Timon Capital, with support from Ventures Platform, Aruwa Capital, Goodwell Investments, and Flour Mills of Nigeria.
The new funding will fuel OmniRetail’s expansion across Nigeria, Ghana, and Ivory Coast, while deepening its push into embedded finance and new product categories like personal care, home care, and cold storage.
Advertisement
A Profitable “Network of Networks” Model
Founded in 2019 by Deepankar Rustagi, the company digitizes supply chains for over 145 manufacturers, 5,800 distributors, and 150,000 informal retailers across 12 cities. Retailers use the app to order inventory, access credit, and make digital payments.
Its asset-light model relies on a distributed third-party logistics network of over 1,100 vehicles and 85 local partners. Thanks to this approach, OmniRetail became EBITDA positive in 2023 and net profitable in 2024—a rare feat in Africa’s strained B2B e-commerce market.
“The profitability journey validated our network-of-networks strategy as scalable and sustainable,” said CEO Deepankar Rustagi.
Embedded Finance as a Growth Engine
A key part of the startup’s success lies in its embedded finance strategy. Unlike rivals that rushed into credit services, OmniRetail built scale first, giving it rich operational data to drive smart underwriting.
Today, its Omnipay BNPL product disburses about ₦19 billion (~$12 million) monthly in inventory credit with near-zero defaults.
The 2024 acquisition of Traction Apps, a Nigerian merchant payment platform, expanded OmniRetail’s capabilities to include POS systems, payment aggregation, and real-time retailer sales data, further solidifying its ecosystem.
“Every transaction in FMCG is about goods and money flow. OmniRetail now controls both sides,” said Rustagi.
Scaling Up — the Road Ahead
With fresh capital, OmniRetail plans to:
- Expand retailer coverage and product categories
- Upgrade its logistics infrastructure
- Enhance its credit underwriting tools
- Pursue a strategic debt raise for inventory finance
- Target acquisitions to accelerate growth
The company is also reporting 40% revenue growth and a 35% increase in net merchandise volume over the past year—all while maintaining profitability despite aggressive expansion.
“This isn’t just fintech. OmniRetail is critical infrastructure for small businesses in Africa,” said Cathrine Conradi, Investor Director at Norfund.
As it deepens its footprint across West Africa, OmniRetail is proving that sustainable, tech-driven growth is possible in one of the world’s most challenging retail markets — and it’s just getting started.
