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When Deepankar Rustagilast raise money for OmniRetail in 2022 , fervour was mellow for African startups addressing the supply Sir Ernst Boris Chain and operational challenge in the tight - moving consumer goods ( FMCG ) sector . At one point , these startupsreceived more capital than all sectors , except fintech .
Recently , though , the industriousness ’s enthusiasm and speculation capital ’s interest have faded , as various business fashion model have struggle under mounting pressure .
Yet for Rustagi , OmniRetail is n’t just another B2B commerce platform ; it ’s an challenging elbow grease to remold loose retail across Nigeria and West Africa using technology and engraft finance in a scalable , profitable way of life . Now that sight has received further endorsement with a $ 20 million Series A fairness funding round . This Das Kapital will aid OmniRetail expand its mien in Nigeria , Ghana , and Ivory Coast , while deepening its focusing on embedded finance product .
The round was co - contribute by Norse growing finance institution Norfund and Lagos , Nigeria - based VC firm Timon Capital , with follow - on participation from Ventures Platform , Aruwa Capital , Goodwell Investments ( via Alitheia Capital ) , and Flour Mills of Nigeria .
This mark Norfund ’s first verbatim equity investing in an African inauguration and , according to Rustagi , puts OmniRetail on a course to dominating in a segment where others have struggled to spring up fruitfully . OmniRetail has elevate $ 38 million in equity and debt since its inception in 2019 .
OmniRetail ’s modeling digitizes order management for 145 manufacturers , more than 5,800 distributors , and services over 150,000 informal retailers across 12 cities in Nigeria , Ghana , and Ivory Coast .
retailer use the app to regulate inventory , entree working capital , and make digital payment . In the background is a third - political party logistics web of over 1,100 vehicle and distributed warehousing content managed by 85 local logistics spouse .
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OmniRetail ’s plus - light strategy has been important in hit profitableness . In 2023 , the B2B e - commerce program became EBITDA positively charged . In 2024 , it turned nett profitable . A similar story is unfold in Egypt , where another B2B e - commerce weapons platform , Cartona , owe its push toward profitabilityto the modelling .
Both chief operating officer have noted that Africa ’s informal grocery is vast and made up of suppliers and distributer that do n’t require to be sack or competed against , but rather made more effective with the technical school creature provided by their platforms .
“ The gainfulness journey was an outcome of our efficiency on utilizing the plus that we aggregate in the electronic web , and this has proven that the model that we put together as a ‘ mesh of web ’ is profitable and is extremely scalable , Rustagi said . “ That ’s the reason we went in advance and lift the capital to eventually put the alloy on the pedal and scale in more geography and in more categories . We ’re expanding now not just to grow , but to optimize . ”
honorable tenancy in reposition , smart logistics itinerary , and deeper family penetration will all amend margins , he add .
Rustagi , in a conversation with TechCrunch , alongside OmniRetail ’s head of investment , Archit Bagaria , further explained that the companionship ’s progress also lie in a bass understanding of the FMCG retail ecosystem , with the entire leaders squad boasting decades of experience .
According to them , it affords a unique advantage of understanding how the value chain works , who the primal musician are , and where the gaps in visibility survive .
“ For years , goods have been moving from peak A to point B , but the lack of transparency has hindered financial inclusion and make inefficiencies in the process , ” said Bagaria . “ By construct an ecosystem that streamline this intact landscape , we can clear these problems . ”
Once a startup reaches decisive mass , Bagaria add together , it becomes easier to layer extra services , such as payment and buy now , pay later on ( BNPL ) , on top of its existing base . “ Our approach has been different from others , and we consider we ’ve regain success with this example , ” Bagaria add .
Unlike other startups that jumped into offer cite products too early or mistimed the launching , OmniRetail waited until it had significant dispersion scale and data . Thanks to this scheme , OmniRetail processed over ₦ 1.3 trillion ( ~$810 million ) in transactions last class , with Omnipay , its BNPL product , disburse ₦ 19 billion ( ~$12 million ) monthly in inventory quotation , boasting near - zero defaults , according to the ship’s company .
AcquiringNigeria - based merchant solution platform Traction Appsin 2024 further strengthened OmniRetail ’s strategy . grip provides full - stack payment capabilities , including PO terminals , PSSP , and Super Agent license , as well as access to retailer - level sale data .
For OmniRetail , the purchase allows it to gain a everlasting financial visibility of each retailer , giving it even greater control over the supply chain and the ability to offer tailored financial solutions .
“ Every dealings in the FMCG value mountain chain has two sides : the motion of good and the movement of funds , ” tell Rustagi . “ Today , we are in a spatial relation to combine maximal welfare from every dealings in the value range . Our plan is to dive deep into the value chain and maximize border . International players have done well in their markets , and we ’re bringing that model to Nigeria today . ”
While it no longer publically let out GMV figures , change over away from the metric that has long been a key carrying into action indicator in the sphere , it account a 35 % increase in net ware volume ( NMV ) and a 40 % extrusion in tax income over the past year , all while conserve profitability despite its expansion .
“ Some of our next moves are optical maser - focalize : a solid debt raise for inventory finance , strategic acquisitions , and a relentless profitable growth . ”
With $ 20 million in fresh capital , OmniRetail contrive to continue develop its retailer basis and expand into new product family like personal charge , home care , and moth-eaten storage .
The capital will also upgrade its base , enhance its credit underwriting tools , and strengthen partnerships with domesticated debt provider . As such , some of its next move admit a debt raise for stock finance and strategical acquisitions , according to Bagaria .
For Norfund , OmniRetail represent more than just a fintech or commerce wager ; it ’s infrastructure .
“ engraft finance is one of the most transformative peter for low business sector emergence in Africa , ” said Norfund investor film director Cathrine Conradi . “ OmniRetail ’s fashion model brings cap to orbit where traditional system have n’t reached . ”
Meanwhile , Timon Capital , which backed OmniRetail from its ejaculate stage , sees this as a breakout moment for the ship’s company .
“ OmniRetail has now hit an flexion item in distribution , payments , and mention , prove just how much profitable growth they can generate with their expanding footprint , ” the firm tell .
