OmniRetail, the hotshot on Africa’s B2B e-commerce circuit, saw huge double-digit financial growth. This milestone signals an exciting and transformative year for the company. Over the last twelve months OmniRetail delivered a significant 35% increase in net merchandise volume (NMV). The company experienced a stunning 40% jump in revenue. In 2023, the company surpassed more than ₦1.3 trillion ($810 million) in processed transactions. This amazing number underscores the Austin-based tech giant’s deep influence on the AEC market.
On the rails side, the company’s innovative Omnipay product has made waves in industry. This service distributed ₦19 billion per month, about $12 million, in inventory credit to retailers. It did so at a remarkable near-zero default rate! These accomplishments came together to make OmniRetail net profitable by 2024, ensuring its position as the industry’s leading firm.
OmniRetail not only realized amazing financial victories, but it won International Innovative Idea of the Year 2024. The company purchased Traction Apps, a Nigerian headquartered merchant solution platform. This smart play allows OmniRetail to build a complete financial picture for each retailer. It increases transparency along the supply chain and improves efficiency.
Taken together, OmniRetail’s unique business model has fully digitized and streamlined the order management process for 145 manufacturers and over 5,800 distributors. The company now reaches more than 150,000 informal retailers on the ground. Its services operate across 12 cities in Nigeria, Ghana, and Ivory Coast, representing an incredible reach within the region.
OmniRetail is coming off a high on their growth spree! The firm recently received an infusion of $20 million in new capital via a Series A equity funding round, co-led by Norfund. This funding should be seen as Norfund’s first direct equity investment in an African startup. Since it was founded in 2019, OmniRetail has raised a combined $38 million in equity and debt financing.
The firm’s announcement says it intends to use this infusion of capital to expand its retailer network. They have their eyes set on expanding into entirely new product types too. OnmiRetail is currently intensifying its foothold in Nigeria as well as Ghana and Ivory Coast. While doing all of this, it’s ramping up on its embedded finance capabilities.
Bagaria focused in on their different approach, saying, “We think our model is a recipe for success.” He pointed to OmniRetail’s creative approach that distinguished it from the many competitors in a hot, crowded space.
OmniRetail has developed a strong third-party logistics network. It includes over 1,100 vehicles and leverages distributed warehousing capacity operated by 85 local logistics partners. This dynamic infrastructure ecosystem enables quick and easy movement of goods and fulfills the many needs of retailers operating in a very challenging retail climate in the region.
“Every transaction in the FMCG value chain has two sides: the movement of goods and the movement of funds,” stated Rustagi, emphasizing the importance of an integrated approach to commerce.
Further financial inclusion for small businesses is one of the company’s goals, with its efforts aimed at making the cloud-based transactions easier to use. For decades, freight moved seamlessly from A to B. This lack of transparency has constrained financial inclusion and introduced unnecessary inefficiencies into the process. In order to do that,” Bagaria continued. By creating an ecosystem that makes all of this a whole lot easier, we can address these challenges.
OmniRetail’s commitment to innovation extends to its focus on embedded finance products, which Cathrine Conradi described as “one of the most transformative tools for small business growth in Africa.” Their clear alignment with contemporary trends in both retail and wholesale spaces makes OmniRetail an exciting place to grow and build our future.
OmniRetail continues to grow its geographic footprint throughout West Africa and service lines. The company is deeply practicing this commitment to creating long-lasting value for its stakeholders. The company’s proactive approach to integrating technology with traditional commerce positions it as a trailblazer in Africa’s evolving e-commerce space.
