Retail company OmniRetail secures $20 million in funding for West African expansion
In a significant move for the digitization of informal retail supply chains across West Africa, Nigerian startup **OmniRetail** has secured $20 million in Series A funding. This investment will be used to expand the company's operations in Nigeria, Ghana, and Côte d'Ivoire, as well as bolster its technological capabilities through the acquisition of Traction Apps, a Nigerian fintech.
Founded in 2019, OmniRetail connects over 150,000 retailers with 5,800 distributors and FMCG manufacturers, streamlining supply chains and improving market access. The startup has experienced explosive growth, with revenue soaring by approximately 71,818% from $280,000 in 2020 to over $120 million in 2023. In 2024, OmniRetail processed transactions worth ₦1.3 trillion (about $810 million) and reached profitability.
The round was led by Norfund, marking its inaugural direct investment in an African startup. Ventures Platform, Aruwa Capital, Goodwell Investments through Alitheia Capital, and manufacturing titan Flour Mills of Nigeria were among the additional investors. The acquisition of Traction Apps, which offers payment and retail tools for small businesses, has enhanced OmniRetail's services for FMCG distributors.
The latest funding round brings OmniRetail's total funding to approximately $38 million since its launch. The startup plans to expand its embedded finance tools, including providing credit to small retailers, to address the challenges faced by informal retailers in sub-Saharan Africa, such as weak supply chains and limited access to credit.
Silverbacks Holdings, a leading Africa-focused private investment firm that was an early investor, partially exited its stake in OmniRetail, securing a fivefold (5x) return on investment. This move underscores investor confidence and the startup’s strong market position, as well as its recognition as one of Africa's fastest-growing companies, topping the Financial Times’ 2025 list for growth.
With the acquisition of Traction Apps and the latest funding round, OmniRetail stands as a highly successful, profitable, and fast-growing startup revolutionizing informal retail supply chains in West Africa. The involvement of major investors like Flour Mills of Nigeria and the backing by Silverbacks Holdings suggest an emphasis on scaling operations, deepening market penetration, and possibly expanding to adjacent markets or product categories in the informal retail sector.
In the acquisition process, OmniRetail has bolstered its technological capabilities by acquiring Traction Apps, a Nigerian fintech that offers payment and retail tools for small businesses, thereby enhancing its services for FMCG distributors. As it continues to grow, OmniRetail plans to expand its embedded finance tools, including providing credit to small retailers, leveraging technology to address challenges faced by informal retailers in sub-Saharan Africa.
