OmniRetail shakes up Africa’s B2B e-commerce market with $20M Series A

Summary

When Deepankar Rustagi last raised money for OmniRetail in 2022, excitement was high for African startups addressing the supply chain and operational challenges in the fast-moving consumer goods (FMCG) sector. At one point, these startups received more capital than all sectors, except fintech. Recently, though, the industry’s enthusiasm and venture capital’s interest have faded, as various business models have struggled under mounting pressure. Yet for Rustagi, OmniRetail isn’t just another B2B commerce platform; it’s an ambitious effort to reshape informal retail across Nigeria and West Africa using technology and embedded finance in a scalable, profitable way. Now, that vision has received further endorsement with a $20 million Series A equity funding round. This capital will help OmniRetail expand its presence in Nigeria, Ghana, and Ivory Coast, while deepening its focus on embedded finance products. The round was co-led by Norwegian development finance institution Norfund and Lagos-based VC firm Timon Capital, with follow-on participation 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, and according to Rustagi, puts OmniRetail on a path to dominating in a segment where others have struggled to grow profitably. OmniRetail has raised $38 million in equity and debt since its inception in 2019. OmniRetail’s model digitizes order management for 145 manufacturers, more than 5,800 distributors and services over 150,000 informal retailers across 12 cities in Nigeria, Ghana and Ivory Coast. Retailers use the app to order inventory, access working capital, and make digital payments. In the background is a third-party logistics network of over 1,100 vehicles and distributed warehousing capacity managed by 85 local logistics partners. OmniRetail’s asset-light strategy has been important in hitting profitability. In 2023, the Lagos-based ...