Nigeria’s OmniRetail Secures $20 Million in Series A Funding to Accelerate Regional Growth
OmniRetail, a Lagos-based B2B e-commerce platform founded in 2019, has announced the successful closing of a $20 million Series A equity funding round. This capital raise is set to support the company's ambitious expansion plans across West Africa, solidifying its position as a key player in the region’s informal retail supply chain.
Strategic Backing and Investment Highlights
The Series A round was co-led by Norfund, the Norwegian development finance institution dedicated to supporting sustainable investments in emerging markets, and Lagos-based Timon Capital. Other notable investors include Ventures Platform, Aruwa Capital, Goodwell Investments through Alitheia Capital, and Flour Mills of Nigeria. This funding now brings OmniRetail’s total raised to $38 million, combining equity and debt since its inception. Significantly, Norfund’s participation marks its first direct equity investment in an African startup, underscoring both the confidence in OmniRetail’s model and its growing role within the informal trade ecosystem across the region.
Growth and Expansion Plans
With this new funding, OmniRetail aims to expand its footprint beyond Nigeria into Ghana and Ivory Coast. The company plans to invest heavily in enhancing its embedded finance offerings, strengthening supply chain networks, and broadening its product categories—particularly in personal care, home care, and cold storage. A significant portion of the capital will also be allocated to improving logistics infrastructure, upgrading warehouses, strengthening credit assessment tools, and pursuing strategic acquisitions that complement its growth trajectory.
Operational Success and Market Impact
OmniRetail’s operational progress has been notable. The company achieved EBITDA profitability in 2023 and turned net profitable in 2024—a rare achievement within Africa’s B2B commerce space. It currently manages order flows for 145 manufacturers, maintains connections with over 5,800 distributors, and serves more than 150,000 informal retailers across 12 cities in Nigeria, Ghana, and Ivory Coast. Its asset-light logistics model, partnering with 85 third-party providers operating a fleet of 1,100 vehicles, allows it to scale efficiently without owning logistics assets directly.
Strategic Moves and Innovations
In 2024, OmniRetail made a strategic acquisition of Traction Apps, a Nigeria-based merchant solutions provider known for its point-of-sale (POS) devices and payment licenses. This move expanded OmniRetail’s payment infrastructure and enhanced its ability to access detailed sales and transaction data at the retail level. Its embedded finance arm, Omnipay, now disburses approximately ₦19 billion (~$12 million) in monthly inventory credits, with minimal default rates—which the company attributes to advanced, data-driven credit underwriting systems that provide comprehensive transaction visibility.
Future Directions
Looking ahead, OmniRetail plans to solidify its leadership position in West Africa’s informal trade sector by refining its technological tools and expanding its geographical reach. The company aims to further improve margin performance while maintaining its asset-light operational model, ensuring sustainable growth without the burden of asset ownership. This strategy positions OmniRetail as a key enabler of regional commerce and a catalyst for financial inclusion in Africa’s vibrant informal economy.
Play audio
No comments