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OmniRetail shakes up Africa’s B2B e-commerce market with $20M Series A
OmniRetail has raised $20M in Series A funding to expand its B2B e-commerce platform in Nigeria, Ghana, and Ivory Coast, improving informal retail through technology and embedded finance. With a focus on operational efficiency, OmniRetail has become profitable and aims to deepen its embedded finance offerings while addressing supply chain challenges in the FMCG sector.
Key points
- OmniRetail raised $20M in Series A funding, co-led by Norfund and Timon Capital.
- The company, founded in 2019, digitizes order management for over 150,000 informal retailers.
- OmniRetail became EBITDA positive in 2023 and net profitable in 2024.
- Their strategy includes building a third-party logistics network and utilizing technology to improve efficiency in the FMCG supply chain.
- OmniRetail processed over ₦1.3 trillion in transactions in 2022, with successful embedded finance products like BNPL.
- The acquisition of Traction Apps enhances its payment capabilities and financial insights on retailers.
- Funding will be used for expanding product categories, upgrading infrastructure, and enhancing credit tools.
Why it matters
- The rise of B2B e-commerce is part of a broader trend towards digitization in Africa, particularly in informal markets.
- Similar e-commerce models in other African countries, like Egypt's Cartona, highlight the continent's potential for scalable digital solutions in logistics.
- Embedded finance is increasingly recognized as a critical component for the growth of small businesses in Africa, indicating a shift in funding strategies.
With significant new funding, OmniRetail is poised to solidify its presence in Africa’s B2B e-commerce space, leveraging technology to enhance profitability and operational efficiency, addressing informal retail challenges effectively.