Retail giant OmniRetail secures $20 million investment for regional expansion in West Africa
OmniRetail Secures $20 Million Series A Funding for West African Expansion
OmniRetail, a Nigeria-based B2B commerce platform, has secured a $20 million Series A equity round, co-led by Norfund and Timon Capital [1]. This investment will fuel the company's expansion into Ghana and Ivory Coast, aiming to deepen its market presence and enhance its embedded finance offerings in these countries.
The funding will primarily be used to scale OmniRetail's operations, particularly by intensifying its embedded finance services and reinforcing its supply chain network. This move is expected to further position the company as a key player in the West African B2B commerce sector.
OmniRetail's unique approach combines cutting-edge tech infrastructure, logistics optimization, and embedded finance into a unified ecosystem [1]. This integrated model allows it to maintain low operational risk and high transaction volumes, setting a benchmark in the sector.
The company's advanced technology platform processes approximately $95 million monthly with loan default rates under 0.5% [1]. This demonstrates strong operational efficiency and risk management, a rarity among African startups.
Cathrine Conradi, Norfund Investor Director, expressed her enthusiasm for the investment, stating, "Embedded finance is one of the most transformative tools for small business growth in Africa" [1].
OmniRetail employs a "network of networks" strategy that links informal retailers with formal supply chains, bridging significant market gaps in African commerce [1]. This approach enables wide vendor and retailer inclusivity while supporting a profitable, scalable model.
The platform supports over 150,000 informal retailers and partners with 145 manufacturers and 5,800+ distributors. Retailers use OmniRetail's app to order inventory, access credit, and make payments [1].
Timon Capital, another investor, stated that "OmniRetail has hit an inflection point in distribution, payments, and credit" [1].
In 2023, OmniRetail became EBITDA positive and net profitable in 2024. Since its launch in 2019, the company has raised a total of $38 million in equity and debt [2].
The acquisition of Traction Apps in 2024 bolstered OmniRetail's financial services stack, giving it full POS capabilities and deeper retailer insights [3].
OmniRetail processed over ₦1.3 trillion (~$810 million) in transactions last year [4]. The company's BNPL product, Omnipay, disburses ₦19 billion (~$12 million) monthly in inventory financing with near-zero defaults [4].
Other investors include Ventures Platform, Aruwa Capital, Goodwell Investments (via Alitheia Capital), and Flour Mills of Nigeria [4].
With this Series A funding, OmniRetail is poised to continue shaping the future of B2B commerce in West Africa, leveraging its integrated model to address the unique challenges in the region.
References: [1] TechCrunch, 2022. link [2] TechCabal, 2022. link [3] BusinessDay, 2022. link [4] Ventures Africa, 2022. link
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