OmniRetail, recognized as Africa’s fastest-growing company in the FT Rankings 2024, has announced its acquisition of Traction Apps, a leading provider of payment solutions for small merchants in Nigeria. This acquisition represents a significant advancement in OmniRetail’s mission to strengthen financial services and trade solutions for small and medium-sized enterprises (SMEs) within the fast-moving consumer goods (FMCG) sector across Africa.
Since 2019, OmniRetail has been addressing the challenges faced by SMEs in the FMCG space. In 2022, the company launched OmniPay, a seamless payments platform that integrates with 13 financial service providers, facilitating efficient collections and supplier payments. By leveraging transaction data, OmniPay builds creditworthiness scores, enabling underserved retailers to access the capital needed for growth.
Founded in 2020 by Mayowa Alli and Dolapo Adejuyigbe, Traction Apps has grown to support over 100,000 merchants through its all-in-one platform, which includes payment acceptance, lending, and retail software solutions. The integration of Traction’s merchant POS services into the OmniPay ecosystem will enhance financial platforms for retailers.
Deepankar, CEO of OmniRetail, remarked, “This acquisition showcases the synergies we’ve developed with Traction. What began as a partnership to incorporate Traction’s POS into OmniPay has now evolved into a full merger. Together, we will simplify payments, credit access, and loyalty solutions for retailers and SMEs, empowering them in an increasingly digital marketplace.”
Traction co-founder Mayowa Alli stated, “This integration will help us scale our solutions and accelerate our vision of simplifying payments at the retail level. OmniRetail’s ecosystem will allow us to extend our innovative offerings to a broader audience, benefiting even more small businesses across Nigeria and beyond.”
Dolapo Adejuyigbe, also a co-founder of Traction, added, “Our goal has always been to empower small businesses. As part of OmniRetail, we will become the leading growth partner for SMEs in Nigeria, providing a more comprehensive platform than ever.”
This acquisition aligns with OmniRetail’s mission to bridge the gap between retailers and financial services, offering a unified platform that improves access to financial resources and enhances operational efficiency.
Strategic Rationale
– Complementary Services: Traction’s offerings enhance OmniPay’s capabilities, creating a comprehensive solution for SMEs in the FMCG sector. This integration will help differentiate OmniRetail from other fintech players, boost customer satisfaction, and improve service delivery.
– Strong Market Presence: Traction serves a diverse range of sectors, including retail, supermarkets, restaurants, fashion, and electronics, aligning well with OmniRetail’s customer base.
– Efficiency and Profitability: The merger will optimize costs and enhance profitability, resulting in a more efficient service model for merchants.
Market Impact
The newly combined entity will serve 160,000 customers across wholesale and retail sectors, positioning itself as a leader in the FMCG space.
Financial and Growth Metrics
The integrated platform will process over ₦2 trillion annually and facilitate loans totaling ₦200 billion each year.
Leadership and Team Integration
The founding team of Traction will join OmniRetail’s leadership, focusing on expanding OmniPay, integrating solutions, and driving product innovation. Dika Oha, Chief Innovation Officer of OmniRetail, noted, “Their expertise in fintech infrastructure, combined with our retail knowledge, will foster innovation and growth.”
Customer Benefits
Customers will gain access to an expanded suite of services, including payments, quicker loan approvals, and a broader range of financial products in emerging markets.
Investor and Stakeholder Support
Traction’s key investors include P1Ventures, Consonance, and Venture Platform. Dotun Olowoporoku, a partner at Venture Platform, emphasized, “This acquisition is a significant step towards building more comprehensive solutions for African SMEs.”
Next Steps and Timeline
The acquisition will be executed in phases, starting with the integration of the OmniPay and Traction teams, followed by platform integration. Full integration is expected by the end of Q1 2025, with enhanced services launching shortly thereafter.
Transaction Details
While specific transaction values were not disclosed, Archit, Head of Investments at OmniRetail, indicated that the acquisition is structured as a combination of equity and cash, allowing Traction’s investors to benefit from the growth of the combined entity.
