When Deepankar Rustagi last raised funds for OmniRetail in 2022, African startups focused on FMCG supply chains were booming. At the time, startups in this sector attracted more capital than any other except fintech.
Today, enthusiasm for the sector has cooled. Many business models have struggled under pressure. Yet, OmniRetail has stood out with a sustainable, profitable strategy. Now, the company has secured $20 million in Series A equity funding to fuel its next phase of growth.
The round was co-led by Norfund, a Norwegian development finance institution, and Lagos-based Timon Capital. Ventures Platform, Aruwa Capital, Goodwell Investments (via Alitheia Capital), and Flour Mills of Nigeria also participated.
This marks Norfund’s first direct equity investment in an African startup. OmniRetail has now raised $38 million in equity and debt since launching in 2019.
OmniRetail’s Scalable Model
Unlike typical B2B commerce startups, OmniRetail aims to reshape informal retail across Nigeria and West Africa. It digitizes order management for 145 manufacturers, 5,800 distributors, and over 150,000 informal retailers across 12 cities.
Retailers use OmniRetail’s app to order inventory, access working capital, and make digital payments. Behind the scenes, a third-party logistics network, made up of 1,100+ vehicles and 85 logistics partners, ensures smooth operations.
This asset-light strategy has been key to profitability. OmniRetail became EBITDA positive in 2023 and achieved net profitability in 2024. A similar trend is happening in Egypt with Cartona, another B2B platform using a similar model.
Rustagi explained that OmniRetail’s “network of networks” improves efficiency without displacing existing suppliers and distributors. “The profitability journey was an outcome of our efficiency on utilizing the assets that we aggregated,” he said.
He added that better warehousing occupancy, smarter logistics, and deeper category penetration will further improve margins.
Deep Industry Knowledge and Strategic Expansion
OmniRetail’s leadership team brings decades of experience in FMCG retail. Rustagi and head of investment, Archit Bagaria, said that understanding the value chain and visibility gaps has given the company a competitive advantage.
“For years, goods moved from point A to point B, but without transparency,” Bagaria noted. OmniRetail’s ecosystem streamlines these inefficiencies, allowing for easier financial inclusion.
Bagaria emphasized that reaching critical mass first was essential before layering services like BNPL. Thanks to this strategy, OmniRetail processed ₦1.3 trillion ($810 million) in transactions last year. Its Omnipay BNPL product now disburses ₦19 billion ($12 million) monthly, with near-zero defaults.
The 2024 acquisition of Nigeria-based Traction Apps strengthened OmniRetail’s position. Traction provides full-stack payment capabilities, including POS terminals and access to retailer sales data. This acquisition allows OmniRetail to create detailed financial profiles of retailers and offer tailored credit solutions.
“Every transaction has two sides: goods and funds,” Rustagi said. “Today, we are in a position to aggregate maximum benefits from both.”
While OmniRetail no longer publicly reports GMV figures, it highlights a 35% increase in net merchandise volume and a 40% jump in revenue over the past year, all while staying profitable.
OmniRetail Future Plans: Scaling Smartly
With the new $20 million funding, OmniRetail plans to:
- Grow its retailer network
- Expand into new categories like personal care, home care, and cold storage
- Upgrade its infrastructure and credit underwriting tools
- Strengthen partnerships with domestic debt providers
- Launch a debt raise for inventory finance
- Pursue strategic acquisitions
For Norfund, OmniRetail represents a key infrastructure investment. “Embedded finance is one of the most transformative tools for small business growth in Africa,” said Cathrine Conradi, Norfund’s investor director.
Timon Capital, an early investor, believes OmniRetail has reached a crucial inflection point. “They’ve shown how much profitable growth they can generate with an expanding footprint,” the firm said.
