OmniRetail raises $20M to scale Africa’s informal retail infrastructure

OmniRetail, the Nigerian B2B commerce startup digitising informal retail supply chains, has secured $20 million in Series A funding to fuel its expansion across Nigeria, Ghana, and Côte d’Ivoire, and deepen embedded finance offerings. The round was co-led by Norfund, the Norwegian development finance institution, and Timon Capital, a Lagos-based venture capital firm, with follow-on participation from Ventures Platform, Aruwa Capital, Goodwell Investments (via Alitheia Capital), and Flour Mills of Nigeria.

Founded in 2019 by Deepankar Rustagi, OmniRetail has now raised $38 million in equity and debt. The company operates a network linking over 150,000 informal retailers, 5,800 distributors, and 145 manufacturers across 12 cities in West Africa. Retailers can order inventory, access working capital, and make digital payments through its platform, supported by a third-party logistics network of over 1,100 vehicles and 85 logistics partners.

OmniRetail’s ability to secure funding stands out at a time when enthusiasm for African B2B e-commerce startups has cooled. After a wave of investment in 2020 and 2021, many startups in the sector struggled with profitability, logistics costs, and scale inefficiencies. However, OmniRetail differentiated itself by adopting an asset-light model, focusing on efficiency rather than hypergrowth at all costs. In 2023, the company became EBITDA positive; by 2024, it achieved net profitability. It processed over ₦1.3 trillion ($810 million) in transactions in 2024 and reported a 40% increase in revenue year-over-year.

Beyond e-commerce, OmniRetail is strategically embedding financial services within its supply chain operations. Its BNPL platform, Omnipay, disburses about ₦19 billion ($12 million) monthly in inventory credit to retailers, with a near-zero default rate. The company also acquired Traction Apps in 2024, a merchant solutions platform offering point-of-sale services and payment licenses. This acquisition gives OmniRetail access to rich retailer sales data, enabling more precise credit scoring and underwriting.

According to CEO Deepankar Rustagi, OmniRetail’s success is rooted in its approach to building a “network of networks,” rather than trying to replace existing players in the informal economy. Instead of competing with traditional distributors and logistics providers, OmniRetail aggregates and empowers them using technology. This strategy mirrors the successful playbook seen in markets like India and Egypt, where companies like Cartona have also pushed toward profitability.

Rustagi understands that logistics routing and deeper penetration into fast-moving consumer goods (FMCG) categories will drive future margin expansion. The company plans to aggressively grow into new product categories such as personal care, home care, and cold storage, while pursuing targeted acquisitions and securing debt facilities to finance retailer inventory.

For investors, OmniRetail represents more than a commerce platform. Norfund’s Investor Director, Cathrine Conradi, described embedded finance as “one of the most transformative tools for small business growth in Africa,” highlighting OmniRetail’s role as critical infrastructure for SME financing. Timon Capital, which has backed OmniRetail since its seed round, called the company’s latest stage “an inflection point” where distribution, payments, and credit converge at profitable scale.

OmniRetail’s model of building financial and logistics infrastructure atop informal retail networks signals a powerful new chapter in Africa’s B2B commerce evolution. With $20 million in fresh capital, a profitable foundation, and strategic momentum, OmniRetail is poised to become a dominant force in digitising and financing Africa’s massive, underbanked retail economy.