OmniRetail Secures $20 Million Series A Funding to Transform Informal Retail in Africa
When Deepankar Rustagi last raised money for OmniRetail in 2022, the excitement was palpable for African startups tackling supply chain and operational challenges in the fast-moving consumer goods (FMCG) sector. Back then, these startups received significant capital, second only to fintech ventures.
However, the landscape has shifted since then, with the industry’s enthusiasm waning and venture capital interest diminishing as various business models faced mounting pressure.
For Rustagi, OmniRetail is not just another B2B commerce platform; it is a bold initiative to revolutionize informal retail across Nigeria and West Africa using technology and embedded finance in a scalable and profitable manner. This vision has now received a major boost with a $20 million Series A equity funding round. The funding, co-led by Norfund and Timon Capital, with participation from Ventures Platform, Aruwa Capital, Goodwell Investments, and Flour Mills of Nigeria, will enable OmniRetail to expand its footprint in Nigeria, Ghana, and Ivory Coast, while focusing on embedded finance products.
This marks Norfund’s first direct equity investment in an African startup and positions OmniRetail as a dominant player in a segment where profitability has been a challenge for others. Since its inception in 2019, OmniRetail has raised a total of $38 million in equity and debt funding.
OmniRetail’s innovative model digitizes order management for numerous manufacturers, distributors, and informal retailers across multiple cities in Nigeria, Ghana, and Ivory Coast. The platform enables retailers to place orders, access working capital, and make digital payments, supported by a robust logistics network and warehousing capacity.
The asset-light strategy adopted by OmniRetail has been instrumental in achieving profitability. The company achieved EBITDA positivity in 2023 and became net profitable in 2024. A similar success story is unfolding in Egypt with another B2B e-commerce platform, Cartona.
According to Rustagi, the profitability journey is a result of efficient asset utilization within the network, showcasing the scalability and profitability of their ‘network of networks’ model. With a deep understanding of the FMCG retail ecosystem and experienced leadership, OmniRetail is well-positioned to optimize and expand its operations.
By focusing on improving warehousing occupancy, optimizing logistics routes, and expanding category penetration, OmniRetail aims to enhance margins and drive sustainable growth. The company’s strategic approach has been validated by its success in processing over ₦1.3 trillion in transactions last year and disbursing inventory credit through Omnipay.
OmniRetail’s acquisition of Traction Apps in 2024 further bolstered its strategy by providing full-stack payment capabilities and access to retailer-level sales data. This acquisition has enabled OmniRetail to gain a comprehensive financial profile of each retailer, enhancing its control over the supply chain and offering tailored financial solutions.
Looking ahead, OmniRetail plans to leverage the $20 million funding to expand its retailer base, diversify into new product categories, upgrade infrastructure, enhance credit underwriting tools, and strengthen partnerships with debt providers. The company’s focus on profitable growth, strategic acquisitions, and debt financing for inventory finance underscores its commitment to sustainable expansion.
For Norfund, OmniRetail represents a transformative force in small business growth in Africa through embedded finance. Timon Capital, a long-time supporter of OmniRetail, sees this funding round as a pivotal moment for the company, highlighting its potential for profitable growth and impact in distribution, payments, and credit.
