OmniRetail Secures $20M Series A to Expand B2B E-commerce in Africa

OmniRetail Raises $20M Series A to Transform African B2B E-commerce

OmniRetail, a profitable B2B e-commerce platform serving informal retailers in West Africa, has secured $20 million in Series A funding. This investment, co-led by Norfund and Timon Capital, will fuel expansion across Nigeria, Ghana, and Ivory Coast, with a focus on embedded finance.

The funding round includes follow-on investments from Ventures Platform, Aruwa Capital, Goodwell Investments (via Alitheia Capital), and Flour Mills of Nigeria. This marks Norfund's first direct equity investment in an African startup.

Profitable Growth in a Challenging Market

While the African B2B e-commerce sector has faced recent headwinds, OmniRetail has achieved both EBITDA and net profitability. The company attributes its success to its asset-light model, focusing on digitizing order management and providing embedded finance solutions.

OmniRetail connects 145 manufacturers, over 5,800 distributors, and more than 150,000 informal retailers across 12 cities. The platform allows retailers to order inventory, access working capital, and make digital payments. A robust logistics network of over 1,100 vehicles and 85 local partners supports these operations.

What African B2B e-commerce startups can learn from OmniRetail's profitable run

Embedded Finance as a Key Differentiator

OmniRetail's strategy emphasizes a deep understanding of the FMCG retail ecosystem. By providing transparency and efficiency, the platform addresses key challenges in the informal market.

The company's BNPL product, Omnipay, disburses approximately $12 million in inventory credit monthly with near-zero defaults. The 2024 acquisition of Traction Apps, a Nigerian merchant solutions platform, further enhances OmniRetail's financial insights and capabilities.

Expansion and Future Plans

With the new funding, OmniRetail plans to expand its retailer base, explore new product categories (including personal care, home care, and cold storage), and enhance its credit underwriting tools. The company also plans a debt raise for inventory finance and strategic acquisitions.

Norfund views OmniRetail as critical infrastructure, highlighting the transformative power of embedded finance for small businesses in Africa. Timon Capital, an early investor, sees this as a pivotal moment for the company's growth.