In Nigeria, mom-and-pop shops are the very foundation of the retail sector, which remains largely informal and accounts for about 90% of the market. These small businesses are critical for providing essential goods and employment opportunities in local communities.
A major trend is the proliferation of these shops in every neighbourhood across Nigeria, serving over 200 million people. However, these shops often face challenges such as limited access to capital, credit, and inefficient business practices, which can hinder their profitability and growth.
On this basis, Suplias was founded to solve the challenges of capital and credit accessibility for these businesses.
Suplias is a B2B platform founded by Sefa Ikyaator and his co-founder Stephen Igwue to address the primary inventory financing issues faced by small and medium-sized retailers in Nigeria.
Using its innovative Obtainly app, Suplias is helping to bridge the financial gap mom-and-pop shops face while also reshaping how retailers and distributors operate across the informal sector.
In a recent conversation, Sefa shared the vision, challenges, and impact behind Suplias, highlighting the unique solutions that have helped transform countless local businesses. Here’s an in-depth look at their journey and impact.
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The Birth of Suplias: Solving Real Retail Problems
Sefa’s idea for Suplias stemmed from his career in retail and FMCGs, where he noticed a glaring gap in inventory accessibility for small-scale retailers. Inspired by Amazon Dash, he envisioned a similar service where retailers could order supplies seamlessly.
After conducting a pilot program and receiving overwhelmingly positive feedback, Sefa and Stephen resigned to focus on Suplias full-time.
“We conducted a quick pilot and built a platform where people could place orders. It scaled quickly because it directly addressed a critical need,” he shared.
“So we spent time looking at the different types of risks that may occur. Is there a product risk, a market risk, a risk for us to run an organisation? All those things were considered, and we saw that yes, there would be some risks; however, just purely believing in ourselves based on our skillset to be able to make it work was helpful.”
Initially, the company focused on delivering products to stores. However, feedback from retailers revealed that their biggest challenge was access to capital for purchasing inventory. Recognizing this, Suplias pivoted to inventory financing, creating a lifeline for retailers to grow their businesses sustainably by accessing needed capital.
Leveraging Experience for Innovation
With a rich background in FMCG, including roles at P&G and GB Foods, Sefa had firsthand insights into the pain points faced by distributors and retailers. This experience informed Suplias’ strategies, combining technology and retail expertise to offer solutions that were both practical and scalable.
Venturing into entrepreneurship is never without risk, and Sefa acknowledged the fears of leaving a stable career to chase a vision. However, careful planning, strong support systems, and a belief in their abilities helped mitigate those fears.
He also acknowledges the role of his co-founder, Stephen, who has been more than just a business partner to a friend. According to him, getting the right fit has played a role in making founding and leading a team easier.
Initial Challenges and Market Success
Building credibility in the market was another significant hurdle. Suplias’ early success in delivering products established trust among retailers, which was crucial for transitioning to the lending space. Through word-of-mouth referrals, affiliate programs, and competitive interest rates, the company solidified its reputation as a reliable partner for retailers.
“In terms of the interest rate, one thing we’ve done that’s interesting is we have a model for our customers to see the type of interest rate that is good enough for us and also good enough for them. So we have a range when it comes to the interest rates in terms of what we charge; it’s not a specific one,” he says.
“We factor in the type of business, the margins they make, and the credit line, and then we apply what interest rates will charge the customer,” adds Sefa.
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The Obtainly Edge: Streamlining Inventory Financing
At the heart of Suplias’ operations is Obtainly, an app that simplifies the inventory financing process.
Obtainly allows retailers to make payments to suppliers, build credit histories, and access loans with ease. Retailers can repay these loans over 30 days, fostering a seamless integration of credit into their daily transactions.
Sefa proudly shared that Suplias has been growing at an impressive rate of 17% month-on-month since launching its lending arm. The company boasts a collection rate of 99.9%, a testament to the effectiveness of its platform and its customers’ trust.
Suplias’ vision goes beyond business—it’s about creating meaningful change. Retailers, particularly women entrepreneurs, have seen significant growth in their businesses through Suplias, Sefa said.
“Women, who are often the backbone of families, represent a large segment of our customer base. They are more reliable with repayments and contribute immensely to their communities. Helping them thrive is a source of pride for us,” he emphasized.
The Future: Scaling Across Africa
With ambitions to expand across Africa, Suplias is piloting a customer management system for manufacturers and exploring new ways to streamline operations for distributors. The company’s vision is to become a billion-dollar enterprise that not only transforms retail but also provides wealth-building opportunities for its employees.
Sefa summed up their long-term goal succinctly: “Every single customer we work with should be better off because they did business with Obtainly.”
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