▼ Summary
– OmniRetail secured $20 million in Series A funding, co-led by Norfund and Timon Capital, to expand its tech-driven retail transformation across West Africa.
– The platform connects 145 manufacturers, 5,800 distributors, and over 150,000 retailers, using an asset-light model that achieved EBITDA positivity and net profitability in 2023.
– CEO Deepankar Rustagi credits profitability to optimizing aggregated assets and a strategic expansion approach focusing on warehousing, logistics, and category growth.
– OmniRetail’s BNPL product, OmniPay, disburses ₦19 billion monthly with near-zero defaults, supported by the acquisition of Traction Apps for enhanced financial infrastructure.
– The new funding will support expansion into personal care, home care, and cold storage categories, alongside infrastructure upgrades and credit underwriting enhancements.
Africa’s B2B e-commerce sector is witnessing a major shift as OmniRetail secures $20 million in Series A funding to expand its tech-driven retail transformation across West Africa. The investment, co-led by Norfund and Timon Capital, signals confidence in the company’s asset-light model, which has already achieved profitability while digitizing supply chains for thousands of informal retailers.
When OmniRetail last raised funds in 2022, African startups tackling FMCG supply chain inefficiencies were attracting significant venture capital. However, many struggled to sustain growth, leading to waning investor interest. OmniRetail’s latest funding round, backed by Norfund’s first direct African startup investment, positions the company to scale profitably in Nigeria, Ghana, and Ivory Coast while deepening its embedded finance offerings.
The platform connects 145 manufacturers, 5,800 distributors, and over 150,000 retailers through an app that streamlines ordering, payments, and working capital access. Behind the scenes, a network of 1,100 vehicles and 85 logistics partners ensures efficient distribution. This asset-light approach helped OmniRetail achieve EBITDA positivity in 2023 and net profitability this year—a milestone shared by Egypt’s Cartona, another B2B e-commerce player.
CEO Deepankar Rustagi attributes profitability to optimizing aggregated assets rather than displacing existing supply chains. “Our ‘network of networks’ model proves scalability,” he said. “Now, we’re expanding strategically—not just for growth, but to maximize margins through smarter warehousing, logistics, and category expansion.”
A key differentiator has been OmniRetail’s measured approach to embedded finance. Unlike competitors that rushed into credit products, the company waited until it had sufficient scale and data. Its BNPL product, OmniPay, now disburses ₦19 billion monthly (~$12 million) with near-zero defaults, processing over ₦1.3 trillion (~$810 million) in transactions last year.
The acquisition of Traction Apps further strengthened OmniRetail’s financial infrastructure, granting access to POS systems, payment licenses, and granular retailer sales data. “Every FMCG transaction involves goods and funds,” Rustagi explained. “We’re now positioned to extract maximum value from both sides of the equation.”
While OmniRetail no longer discloses GMV, it reports a 35% increase in net merchandise volume and 40% revenue growth over the past year—all while maintaining profitability. The new funding will fuel expansion into personal care, home care, and cold storage categories, alongside infrastructure upgrades and credit underwriting enhancements.
Norfund views OmniRetail as critical infrastructure for Africa’s informal retail sector. “Embedded finance unlocks growth where traditional systems fail,” said Investor Director Cathrine Conradi. Timon Capital, an early backer, calls this a breakout moment: “Their distribution, payments, and credit solutions demonstrate how profitable scaling works in this market.”
With plans for strategic acquisitions and a debt raise, OmniRetail is doubling down on its mission—proving that in Africa’s challenging B2B landscape, efficiency and patience pay off.
(Source: TechCrunch)
