Nigeria-based OmniRetail raises $20 million in Series A funding, now raised $38 million since 2019

Nigeria-based B2B e-commerce platform, OmniRetail, has raised a $20 million Series A equity funding round. the new investment will enable the startup to expand its footprint in Nigeria, Ghana, and Ivory Coast while extending its focus on embedded finance products. With the round, OmniRetail has now raised $38 million in equity and debt since its inception in 2019.

The round was co-led by Norwegian development finance institution Norfund and Lagos-based VC firm Timon Capital, with follow-on participation from Ventures Platform, Aruwa Capital, Goodwell Investments (via Alitheia Capital), and Flour Mills of Nigeria. The round also marks Norfund’s first direct equity investment in an African Startup.

According to co-founder Deepankar Rustagi, the development puts OmniRetail on a path to dominate in a segment where others have struggled to grow profitably. He noted that the company isn’t just another B2B commerce platform but a strategic effort to reshape informal retail across West Africa by enhancing tech and embedded finance.

Embedded finance is the integration of financial services into non-financial platforms, products, or services. This allows users to access financial tools and services seamlessly, without having to interact with traditional financial institutions directly.

Rustagi explained that the journey reflects their efficiency in utilising the network of its assets, where such networks are profitable and highly scalable.  

“That’s the reason we went ahead and raised the capital to finally put the metal on the pedal and scale in more geographies and in more categories. We’re expanding now not just to grow, but to optimise.”

While reacting to the funding round, Norfund explained that what OmniRetail represents is more than just a fintech or commerce bet, as it brings capital to areas where traditional systems haven’t reached.

“Embedded finance is one of the most transformative tools for small business growth in Africa,” Norfund Investor Director Cathrine Conradi added.

Also Read: Stitch raises $55 million series B to total $107 million funding in 4 years.

Also, Timon Capital, which backed OmniRetail from its seed stage, sees the funding round as a breakout moment for the company.

“OmniRetail has now hit an inflexion point in distribution, payments, and credit, showing just how much profitable growth they can generate with their expanding footprint,” the firm said.

OmniRetail succeeded where others failed

After raising its last funding round in 2022, there were high hopes for African startups addressing the supply chain and operational challenges in the fast-moving consumer goods (FMCG) sector. While funding flooded the sector at those moments, venture capital’s interest in it faded after various business models struggled under severe economic conditions.

For OmniRetail, the case seems different.

Its model digitalises order management for 145 manufacturers, and over 5,800 distributors, while servicing more than 150,000 informal retailers across 12 cities in Nigeria, Ghana, and Ivory Coast. Also, retailers use the app to order inventory, access working capital, and make digital payments. It has a third-party logistics network of over 1,100 vehicles and a distributed warehousing capacity managed by 85 local logistics partners. 

In profitability, OmniRetail’s performance has been top-notch. In 2023, the Lagos-based B2B e-commerce platform became EBITDA positive and turned net profitable in 2024. 

OmiRetail’s head of investment, Archit Bagaria, further explained that the company’s progress also lies in a deep understanding of the FMCG retail ecosystem, with the entire leadership team boasting decades of experience. He added that the company affords a unique advantage of understanding how the value chain works, who the key players are, and where the gaps in visibility exist.

“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 building an ecosystem that streamlines this entire landscape, we can solve these problems. Our approach has been different from others, and we believe we’ve found success with this model,” said Bagaria

Bagaria noted that once a startup reaches critical mass, it becomes easier to layer additional services, such as payments and buy-now-pay-later (BNPL). OmniRetail processed over ₦1.3 trillion ($810 million) in transactions last year. With Omnipay, its BNPL product, the company disbursed ₦19 billion monthly ($12 million) in inventory credit, boasting near-zero defaults.

While other startups jumped into offering credit products too early or mistimed the launch, OmniRetail waited until it had a significant distribution scale and data. 

Strategic move to gain more ground

In 2024, OmniRetail acquired Nigeria-based merchant solution platform Traction Apps to further strengthen its strategy. Traction provides full-stack payment capabilities, including POS terminals, PSSP and Super-Agent licenses, and access to retailer-level sales data. The purchase allows the company to gain retailers’ financial profiles, which gives it financial control over the supply chain and tailored financial solutions. 

“Every transaction in the FMCG value chain has two sides: the movement of goods and the movement of funds. 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 maximise margins. International players have done well in their markets, and we’re bringing that model to Nigeria today,” said Rustagi.

As the company no longer publicly discloses Gross merchandise volume (GMV) figures, shifting away from the metric that has long been a key performance indicator in the sector, it reports a 35 per cent increase in net merchandise volume (NMV) and a 40 per cent rise in revenue over the past year. This came in alongside the acquisition.

On the future outlook, OmniRetail aims for a solid debt raise for inventory finance, strategic acquisitions, and relentless profitable growth. The B2B e-commerce company plans to continue growing its retailer base and expand into new product categories like personal care, home care, and cold storage. The $20 million acquisition will also help upgrade its infrastructure and enhance its credit underwriting tools.