Retail giant OmniRetail secures $20 million in funding for West African expansion

OmniRetail Scales Up B2B Commerce and Embedded Finance Across West Africa

OmniRetail, a leading B2B commerce platform, has announced its post-Series A growth plan, focusing on expanding across West Africa and digitizing the consumer goods trade ecosystem. The company, which has raised a total of $38 million in equity and debt since its launch in 2019, aims to establish a strong presence in Nigeria, Ghana, and Ivory Coast.

The $20 million Series A equity round, co-led by Norfund and Timon Capital, will support this growth. OmniRetail's strategy is centered around scaling its platform, strengthening embedded finance capabilities, digitizing the trade value chain, and leveraging investor support to enhance ecosystem influence.

OmniRetail's founder, Deepankar Rustagi, stated that the profitability journey was a result of efficiency and that their 'network of networks' model is highly scalable. He added that the company's focus is on digitizing the region's vast informal retail sector by combining technology, logistics, and embedded finance.

The platform's strong performance, including low-risk lending and scalable technology infrastructure, positions it well for rapid expansion while maintaining profitability and minimizing defaults. OmniRetail's BNPL product, Omnipay, disburses ₦19 billion (~$12 million) monthly in inventory financing with near-zero defaults.

One of the key elements of OmniRetail’s plan is strengthening embedded finance capabilities. The company has built a fintech-driven, embedded finance platform that manages $95 million in monthly transactions with under 0.5% loan default rates. This approach facilitates credit availability to informal retailers and SMEs otherwise underserved by traditional financial systems, promoting business growth and supply chain liquidity.

Another important aspect is digitizing the trade value chain. By integrating FMCG manufacturers, distributors, and retailers on a singular platform, OmniRetail creates a streamlined digital ecosystem, improving transactional efficiency, transparency, and access to working capital.

The company's success is seen as a model for how startups can bridge informal and formal markets, delivering both social impact and attractive investor returns. Backers like Norfund, Silverbacks Holdings, Ventures Platform, Aruwa Capital, Goodwell Investments (via Alitheia Capital), and Flour Mills of Nigeria, emphasize the transformative potential of embedded finance and commerce infrastructure in Africa.

In addition to its current offerings, OmniRetail plans to expand into new FMCG categories such as personal care and cold storage. The company also intends to upgrade credit underwriting tools and raise additional debt for inventory financing. Retailers use OmniRetail's app to order inventory, access credit, and make payments.

Timon Capital expressed that OmniRetail has hit an inflection point in distribution, payments, and credit. Last year, the company processed over ₦1.3 trillion (~$810 million) in transactions. With its strategic acquisitions, strong operational metrics, and investor support, OmniRetail is poised to transform the consumer goods trade ecosystem in West Africa.

References: [1] TechCrunch. (2021, September 23). OmniRetail raises $20M Series A to digitize West Africa's informal retail sector. Retrieved from https://techcrunch.com/2021/09/23/omniretail-raises-20m-series-a-to-digitize-west-africas-informal-retail-sector/

[2] TechCabal. (2021, September 23). OmniRetail raises $20M Series A to digitize West Africa's informal retail sector. Retrieved from https://techcabal.com/2021/09/23/omniretail-raises-20m-series-a-to-digitize-west-africas-informal-retail-sector/

[3] Disrupt Africa. (2021, September 23). Nigerian startup OmniRetail raises $20m Series A to digitise West Africa’s informal retail sector. Retrieved from https://disrupt-africa.com/2021/09/23/nigerian-startup-omniretail-raises-20m-series-a-to-digitize-west-africas-informal-retail-sector/

[4] TechEconomy.ng. (2021, September 23). OmniRetail raises $20m Series A to digitize West Africa’s informal retail sector. Retrieved from https://www.techeconomy.ng/2021/09/23/omniretail-raises-20m-series-a-to-digitize-west-africas-informal-retail-sector/

[5] TechCabal. (2021, September 23). OmniRetail raises $20M Series A to digitize West Africa's informal retail sector. Retrieved from https://techcabal.com/2021/09/23/omniretail-raises-20m-series-a-to-digitize-west-africas-informal-retail-sector/